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Technology Stocks : Trimble Navigation -- Ignore unavailable to you. Want to Upgrade?

To: David who wrote (2738)	8/28/1998 1:42:00 PM
From: SKIP PAUL	Read Replies (2) \| Respond to of 3506

(1) Japan is getting killed, so surveying sales suffer. [skip] Sales in japan cannot get any worse than they have been. If anything they may get better. The Japanese stockmarket may not have anything to do with survey sales. Japan is still one of the wealthiest countries in the world. (2) Car navigation unit sales flat as Japan shifts from retrofitting (Pioneer area of market) to OEM (where Pionee/TRMB has less presence). [skip] I dont know where you are getting this from but even if it were true, this is insignificant part of Trimble's revenue base especially in comparison to the new areas that are coming up such as mining deals Where each deal is over a million. Witness the growth areas in last quarters results. (3) Company management and staff adrift during quarter until permanent replacement is found for CEO. [skip] To the contrary!! The message is loud and clear produce or else. I am warming up to Brad Parkinson. I think he will do a good job. I heard him speak at the last user conference. He is going to surprise a lot of people. Don't be surprised if he takes over for good. (4) Timing is coming on line, but I don't think it will amount to enough revenue to turn things around this quarter. [skip Not huge but enough to make a difference to the bottom and top lines. I am still optimistic long-term, and I think the stock is suffering from events that will correct in the not very distant future, but we may see problems for a quarter or two. [skip] The problems at Trimble are an easy fix. The business is humming along. Management of the bottom line from Wall Streets perspective was something Charlie was simply not focused on. It seems he always opted for developing it now rather than later. I think that is going to change. Dont forget the company has about $40 million left over each quarter after cost of goods sold. If they could only cutback $1.5 million on R&D and $2.5 Million on SG&A you've got 17 cents in Earnings before taxes.