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Re: Kirk post# 69

Tuesday, 10/21/2003 9:27:36 PM

Tuesday, October 21, 2003 9:27:36 PM

Post# of 147
I see your point.

I believe CACS is a solid play to $250M. Last upswing they hit $100M+ with the processes of a $25M company, which just about ripped the seams. CACS wasted money and barely managed to build enough product to ship what with production and yield issues.

Then they retrenched, got major contract manufactures, did some real design-for-manufacturing, and staffed for $200M going up.

Then the bottom fell out. After years of cuts some gains have fallen by the wayside, but yields are good, designs are sound, and most of the remaining issues are due to thin staffing (which is easy to fix if revenue allows growth). Overall efficiency is good. The clothes are just baggy now.

With a few months of lead-time the CMs could crank out any quantity of product, and I believe the mgmt team can manage to $150M-$250M well this time around. $1B I'm not so sure about, but by the time we're up 10x I'm not sure I'll care!
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