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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Michael Burry who wrote (6659)	4/9/1999 5:19:00 PM
From: sjemmeri	Respond to of 78594

>Profit Margin (ttm) 3.8% Do you know what the problem is here? /and/or the catalyst for improvement?

To: Michael Burry who wrote (6659)	4/9/1999 6:54:00 PM
From: James Clarke	Read Replies (2) \| Respond to of 78594

<<I like this part best: Another benefit is the that these machines have to be serviced often. Guess who provide the service. Yep, Varian.>> Be careful with that. I cover capital equipment for my firm, and this is what every management says. Harnischfeger provides all the parts for its machines at high margin, but look what happened to that stock in a down cycle. What ends up killing industrial cyclicals is factory fixed costs - when the machines stop selling for a time, the parts business helps, but doesn't save you.