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Non-Tech : Cannondale Corp. (BIKE) -- Ignore unavailable to you. Want to Upgrade?

To: Maverick who wrote (69)	6/26/1998 1:27:00 PM
From: Bert Zed	Respond to of 103

Sure do Maverick. Thank goodness I jumped out a while back just before their previous profits warning. I wonder if they are writing off all the development costs on the motorbike as they incur them and not capitalising any of them ? Oh well, it will not be the first time that a company has had its fingers burnt by diversifying. Heads should roll for this.

To: Maverick who wrote (69)	6/30/1998 2:12:00 AM
From: Steve Patterson	Read Replies (1) \| Respond to of 103

Even if Cannondale executes flawlessly on their motorcycles they are jumping into a very crowded market with many players, most with long-term experience and R&D. Honda, Kawasaki, Suzuki, and Yamaha (the Big Four Japanese makers) plus the smaller manufacturers, most in the low-production/high-price niche Cannondale wants: ATK, KTM, Husaberg, and several more I don't remember. I have a hard time looking at the new Yamaha 400 and the Husaberg line and figuring out where Cannondale comes in, even if they do everything right -- and even the Big Four take several years to perfect a new model. I just couldn't bring myself to short Cannondale at the time. Oh, well. Furthermore, the pre-release information shows nothing revolutionary about the new bike, which was (to me) their last hope of trumping the existing market. In fact, the mountain bike industry has been living off of imported off-road motorcycle technology for some time, so I should have seen this coming. My prediction: they will _never_ make any money in off-road motorcycles, but will spend a lot trying. Too bad for them. Steve