TSXV:KUR.H - Post by User
Post by
molikaion Nov 14, 1999 8:39am
454 Views
Post# 1077002
Written in black and white is....................
Written in black and white is....................the answer to our question about contract size. The XM and CD contracts are huge but too big for UBS to handle at this time.
Rosen is confident that UBS' product line is competitive. "From an industry standpoint we have the technical capability to do anything." But, throughout the company's history, it has partnered with larger companies to gain access to the marketplace, and roping big contracts depends on who UBS is tied with. "Let's be realistic," he says, "I wouldn't give us a $30 million contract to roll out 20 cities with a system." At this point, UBS is not big enough to roll out its equipment across a large network. Rosen hopes that in two years, or five years, the company will employ about 500 people, and have a system integration division. But that's not the company's strength right now. "I don't care if our equipment says Nortel [T.NT] or Lucent [LU]," he says. "As long as we are getting the sales. That's the bottom line to us."
Should we interpret this as meaning that UBS has landed a much smaller contract than everyone is speculating on?
Personally it doesn't matter much because I'm in for the long. I couldn't buy as much as I wanted at lower prices but maybe it will soon be returning there.
This stock will eventually maintain higher prices but on earnings not hype!!