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.

Technology Stocks : XYBR - Xybernaut -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Park who wrote (2414)	4/2/1999 5:14:00 PM
From: Dave Shoe	Read Replies (1) \| Respond to of 6847

>>>I am a bit concerned about how XYBR >>>will manage it's inventory. I don't know how Xybernaut will determine the rate for production speed, but I strongly suspect they are assembling MA-IVs only fast enough to meet demand. The main benefit to this method is to minimize reworking warehoused product when field repair trends call for Engineering Change Orders (ECOs). Actually, as MA-IV production is very likely way below capacity at the Sony facility (I'm sure it's a smaller line with minimal automation), they are likely running product about one week a month right now (I'm only guessing). I don't believe finished goods are heavily backed up in the warehouse. Also, I don't believe Sony has warehoused much of the molded plastic parts either, as it all becomes low-quality regrind if an ECO changes the shell specs. Minor tweaks are common in early production. Some of the electronic components are probably bought on 'allocation' so Xybernaut is likely buying these items at speed, but most of the parts can and should be bought 'as needed' to keep the lots as fresh as possible and inventory low. >>>Why not follow Dell's model and sell direct >>>to mainstream America while at the same >>>time using a strong corporate sales team. They are sort of doing this now, though their web page is so weak you wouldn't know it by looking (hey, I gripe alot, too). With Dell, volume is so high and margin so low they must operate efficiently. Xybernaut's focus is presently not so much to maximize sales, but to develop markets for future growth. A lot of their time is going into creating an infrastructure. Dell already has a fully developed infrastructure, so it's kind of a different animal. >>>The longer the MAIV's sit in the warehouse the more >>>useless it gets. Laptops are dropping in price tremendously. With the processor available in limited supply since January, I expect a 300MHz MA-IV may become available soon (just my guess). Xybernaut is not likely overstocked on 233 MHz CPUs (I don't think laptop CPUs are on allocation), so depreciation or obsolescence is not likely much of a problem for Xybernaut inventory. >>>Palmtops are becoming more powerful with new features. Palmtops are only strong in certain areas. The MA-IV offers far more utility in the field. Technology may be changing fast, but full-function wearable PCs are going to keep ahead of palmtops (both in power and price) for a long time to come. Just my opinion. >>>Lastly, IBM can come out with a wearable and >>>crush XYBR if they wanted to. If the market get's that big, Xybernaut will probably make a killing on patent rights alone. When the wearables market gets big enough to interest the big names, many big names will be jumping in. Xybernaut, with it's experience and patent background, will simply get bought out - that assumes any buyer is big enough to afford Xybernaut when they figure it out. >>>I don't know why KANA is the one running XYBR's website. They probably offered their services to Xybernaut really cheap (or is that 'really cheap services') and had planned to 'use' the Xybernaut name frequently to add value to their own name. Just thinking about it makes me want to buy a basket of that KANA Platinum wine and haul myself on down to the train tracks. UPDATE THE DANG SITE SOMETIME! All those technical errors and omissions make the competition look superior. Rumor has it KANA has a new Xybernaut website layout coming out in a couple months, but that's worthless if it isn't maintained on a regular basis. The above is only my opinion. Shoe.