Zeev's Turnips Patch-No Politics (ZEEV)

[nancy2]

11:47 ZBRA Mike Tarsala's TechWatch Alert -- ZBRA (50.14 -5.89)

Zebra Technologies is sliding as a rumor spreads on trading desks that the co might lose an RFID contract with Wal-Mart. We've left a message at ZBRA and haven't heard back yet. If that's the case, the selloff could be overdone. We know Wal-Mart (WMT) is not a customer that makes up 10% or more of revenue, since ZBRA currently doesn't have any 10% customers -- the last one was UPS, and analysts say that was more than a year ago. While a lost contract for Zebra bar code printers with RFID encoders would not be huge, any word of WMT dropping requirements that its SUPPLIERS use RFID technology would be a blow -- but so far, that's not what we are hearing.