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No. of Recommendations: 3
I can understand everybody bailing out of INVX. The near future is very bad and there is no guarantee's after that. Looking at last year's 10K and proxy statement, this quarter's press release and listening to the conference call, INVX is definitely having a hard time. However, INVX is not a quitter, it never has been a quitter as its history shows. It is a company that builds on the old to make something new by combining their old knowledge and wisedom with knowledge gained by acquring another company. It reminds me of the public annoucement you see on TV about wearing seatbelts were the 2 animated car dumbies are thrown around and the annoucer in the end saying "You can learn alot from a dumbie". Well you can learn alot about where INVX is going by looking at its long history.

INVX is a very old computer components supplier. It started in out 1972 by acquiring the assets of a manufacturer of needle and wire assembles used in computer cores memories. However, within 2 years of starting, integrated circuits made needle and wire assembles obsolete. INVX did what has become a tradition in the company. They took the knowledge they had and built on that to try something new. In 1973 they moved on into manufactoring that required micro-welding and minature assembly expertise. This knowledge later was used to manufacture small electromagnetic products which could not be produced economically by others. These products included fine wire assemblies which produced for INVX $100's of millions in revenue. In 1996, INVX acquired Litchfield Precision Components, Inc., a designer and manufacturer of highly complex and intricate flexible circuits and chemically machined electrical components. This knowledge was used to produce the current FSA product. In 1999, INVX acquired ADFlex which was a leading supplier of flexible circuit based solutions to the computer, computer peripheral, communications and consumer electronics industries. The have now combined this with the old INVX to try to become the leader in manufacturing of high and middle end flexible circuits.

During INVX's history, they have repeatedly tried to diversify. Some of these included being the the nation's largest supplier of multi-image printers to the professional photo market, maker of pacemaker wires, owning the software to a early internet search engine which was crically acclaimed at the time. They bought a company to get high precision control technology for use on grinders used by disk drive manufacturers which later led to head gimbal locating technology. All of these they later sold off or wrote off, but INVX kept the knowledge and wisedom gained from it to advance. And while they were down for a while, they always came back and found a way to make a profit.

During the history on INVX, it has only had one CEO, Tom Haley. He is retiring this year as CEO but will stay on as Chairman of the Board to provide a guiding light for the company. His wish words are what you should listen to when you look at INVX and its current future. These are his words from the last conference call.

"For those of you that have followed Innovex for a long number of years, this is the first red quarter, other than extraordinary expenses, that we have experienced in some 27 year. We don't intend to stay in this mode very long. Unfortunately as Bill (William Murnane)told you, it looks though next quarter might also result in an operating loss, but going forward beyond that, we fully expect Innovex to return to the kind of profitablity that it had enjoyed for many years."

With a 27 year of history of success, I will continue to bet my money on Innovex.
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