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Technology Stocks : Zenith - One and Only -- Ignore unavailable to you. Want to Upgrade?

To: B.D. who wrote (3946)	1/11/1998 9:43:00 PM
From: Robert Utne	Read Replies (1) \| Respond to of 6570

B.D. Not the message I got at the CES. Zenith is thought of quite highly in terms of technology and current products by other CE manufacturers, dealers and consumers (#2 in sales in the US following RCA). Also, Zenith is the clear leader in HDTV technology and will be the first to sell HDTV sets. Once you experience HDTV audio and visual, I guarantee you'll hate to view your present TV. The early adopter, baby boomer and senior markets, especially, will drive HDTV sales. You can bet on it.... Zenith needs additional equity partners. My read is that either INTC or MSFT (or both) could be future ZE equity partners, in the near future. They both want to get into CE and Zenith offers them the best CE digital technology and branding available in the marketplace. There are a corps group of engineers and other talent at Zenith to build upon and much dead wood to eliminate. Zenith drastically needs additional engineering talent and both MSFT and INTC could help meet this need (as well as serve as a very-much-needed, cash-infusion source). Frankly, I was very disappointed at Zenith's performance at the CES. They played it very low keyed and totally missed the opportunity to declare to the world: "HDTV is Zenith". Zenith staffers claimed their low-keyed performance was due to the lack of money. I saw it's from a lack of leadership and clearly-thought-out marketing strategy. Zenith failed to make clear the message that Zenith, one of the key originators of HDTV, will be the first to sell HDTV receivers starting as early as March. Also, unlike RCA (partnership with DirecTV who will be transmitting two channels of HDTV beginning in the fall), Zenith has no DBS partner to help introduce Zenith's HDTVs to every high-end CE showroom in the US. This should be top priority at Glenview. Zenith still hasn't established a VSB licensing, royalty schedule for broadcasters and receivers. $50 to $100 per unit is my recommendation. Zenith deserves it (and needs it)!!! Zenith needs a new ceo, cash and talent infusion and winable marketing strategy. If these needs are met, ZE will soar. Certainly, there are no guarantees for Zenith's future success, however, the risk/reward ratio, at the present price of ZE, appears very favorable to the bullish position.

To: B.D. who wrote (3946)	1/11/1998 10:02:00 PM
From: Ricstar	Read Replies (2) \| Respond to of 6570

B.D. - unfortunately, my experience with the Zenith name has been the same. In the past month, I have gone into several different electronics stores (Circuit City, Good Guys, etc.) and have asked about the Zenith brand. It was as if I were inquiring about an Edsel. Every salesperson dismissed the Zenith televisions as a brand I would be satisfied with and recommended other brands, such as Sony, Hitachi, Mitsubishi, and ProScan. My impression is that the Zenith Brand has bbecome the proverbial dinosaur. Something must be done to change the Zenith image. That being said, my gut still loves this company. But whether they succeed will depend on whether or not they take charge on the HDTV front. The company can't sit back and let the other big names steal their thunder. Zenith played a crucial role in the HDTV development. Now it has to profit from that role. Much will obviously depend on the new CEO, what direction he/she has for the company, and how the street reacts. Building relationships with big name companies like INTEL certainly can't hurt the ZE reputation, so long as the company actually benefits from those relationships and isn't taken advantage of. Now is the time for the company to cast off that tired, worn out image. If Chrysler could do it, so can ZE!