CompuServe Messages

The problem seems to be manufacturing expenses are incurred in countries like Taiwan where the currency is tied to the US dollar and most (~75%) of revenues are in Europe, Germany in particular. A stronger dollar results in a margin squeeze. While C='s announcement is news this relationship is not. Sales volume abroad continues to go up, up, up. Fundementally the company is in good shape. I think the stock is a screaming buy at 14. If the strong dollar continues (Art sez it won't) a couple steps CBM could take are moving more, or all, cost centers like R&D to where the revenues are – Europe. OR they could concentrate on getting US revenues up to a bigger slice of the pie. This latter step they've been working on for years without much success (as we all know). — Art