Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Gentex (GNTX) -- Ignore unavailable to you. Want to Upgrade?

To: vestor who wrote (116)	7/20/1998 11:00:00 AM
From: Turs	Read Replies (1) \| Respond to of 196

GNTX gets roughly 40% of its sales from GM, but I believe over 50% of its profits (because of the mix of mirrors supplied). The Saturn doesn't have any EC mirrors on it and won't for a long time. Remember, these are part of package options that until very recently have only been offered on luxury vehicles and SUV's. As far as the strike goes, the stock may reflect the temporary lull in sales because of the strike. But, it should only go down to some floor (I see $13 as that level) because once the strike is settled, that issue is water under the bridge. They are lost sales which will not be recovered for the most part, but really don't affect demand for next year. Next year's sales and earnings will be the same as we are currently expecting. Think about it: all those people who will buy cars next year will still buy them. And GM will supply as much as demand warrants. The lack of production now has no effect on that. In fact, there may even be a backlog of demand building as those people who want to buy a Tahoe or a Seville but can't find one on the lot will postpone their purchases until production resumes again, rather than buying a model that was their second choice. And if they do, it's likely GNTX supplies mirrors for that model as well. CONSIDER THIS STRIKE AN OPPORTUNITY, NOT A RISK. The electrochromic mirror market has not changed one iota.