SurgLine International Inc (SGLN)

[righton21]

The other way to look at this is to look at Surgline and their expenses at this moment. Right now they are lean and mean. Many criticize them for this, you know, "sharing a fax machine", no secretaries, etc. and all the encumbrances of a large office on the 50th floor of some skyscraper "over-looking the Bay". You've all read the arguments against them on this. But that is what will save them now! The large multi-billion market cap competitors have these high offices to pay for, helicopters for the executives, too many vice-presidents they should have fired long ago, shareholders to make happy, and on and on. They can only lower their prices so far, what? 5, 10, 15% before they are in the loss column. Shareholders don't want to hear about it.

Mr. Toland said early on, if the competitors lower their prices, we'll just lower ours further. Surgline has a lot more wiggle room than the large competitors because of Surgline's fewer expenses and the pricing structure and cost of manufacturing. In the end, the competition will not be able to undercut SGLN on prices, that is for sure. IMO