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Stocks X / Xerox Corporation


Subject:  Happy Days Again? Date:  7/26/2000  7:58 AM
Author:  BandHPatWork Number:  1298 of 3614

As I read between the lines of the Business Wire's XRX press release(06:00 AM today Dallas time), I am convinced it is time to take heart and continue to buy, even if the "Analysts" are saying hold. I mean, the copany is guaranteeing no cut in the dividend, so why hold? since the price is OBVIOUSLY going to return in time, XRX at $18 is awfully attractive (to me).

"Allaire added that the company's future positive turnaround was not in doubt --
though precision as to its timing remained uncertain, and he underscored that
the company had no plans to reduce the dividends paid to shareholders.
"While there is a need for a significant downward adjustment to current second
half expectations, we are convinced that the fourth quarter will show that the
issues are yielding to our corrective actions," Allaire said."

I hubly submit that if there was a doubt, XRX would not comit to a non-reduction in dividends. Their cash position can withstand a dividend, even if the earnings do not warrant it. I think that shows a committment OF ACTION that backs up the recent words I've read/heard.

XRX has new deals working, e.g. the 59% revenue increase in Fuji Xerox over the same quarter last year; the new high speed printers, their expansion of their already dominant position in the color copier line and the price-point reduction of some their DocuTech's.

All in all, I am encouraged. As a LTB&H through B&H.Com (forgive the plug, but I really like those guys), I am very confident the XRX stock is a GREAT place to be for the next few years. I still plan to do my annual portfolio re-evaluation in 10 months, but unless Alaire gets shot in the foot by another "Mexican Book Cooker" in another country, the hits to the bottom-line should be about done.

Glad I bought in at $22 instead of $62, though. Otherwise, I bet I'd be somewhat more pesimistic. Amazing how an amateur analysis can be dependent upon the paper value of a personal investment. I wonder if the "Pros" are similarly affected....

Nahhh!!! They are all dispassionate professionals, right?
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