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Gold/Mining/Energy : MYT - Mytec Technologies -- Ignore unavailable to you. Want to Upgrade?

To: oss who wrote (1061)	7/9/1998 12:56:00 AM
From: JOHN RIXON	Read Replies (2) \| Respond to of 1535

I agree the threat of lower monitoring is common talk lately and I think its been used to rattle the industry by larger players to intimidate the smaller companies to consider selling or to panic and sell at even lower margins to their own possible demise. At least thats what I'd do if I was in their position. Ultimately, the low or free systems are really no different than giving away free monitoring for a period of time, and for companies with their own stations, the cost is insignificant. The key to survival if your in the industry, don't panic and look long on your own business. I think that the regional,national and multinational security companies will probably not continue free alarms forever, 3 years max until they have determined that the attrition/default rate on free systems will no longer be a sound policy and we will see changes. Companies like Vox (VSE) will have a tough time and we might see them sold like Rogers Canguard just was to Protection One. The only way the investors will get a payback in a Monitoring only investment is when the company is sold. Companies like MYT will survive as they have diversified into other growth areas. Bell is a monster company that is trying to diversify into related areas as some utilities have in the US. The key to their interest lies in RMR. Will they lose money to get VSE growing, Yes, but don't underestimate their desire not to kill a cash cow. Low cost entry alarm systems with bundling of other services may or may not work. Time will tell, but the answer again lies in patience from you! Quality will always prevail and customer service wins in the end. Monitoring will not be discounted for long and only by panic stricken people. The race to add accounts will slow and so will the give aways. Regards; John