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What happened to everyone? This stock probably represents an ideal case of foolishness.

The results weren't so bad. The company made money. It's sales increased. And it's still the leader in its unique niche.

So why the sixty percent drop in stock price? Disappointment of the professional analysts! But a company that sells caital goods, and that's what EFII's printing technology is, will always exaggerate the business cycle. When its customers catch a cold, it catches pneumonia. So..., the slowdown shouldn't have been a surprise.

The good news is that there will be a pend up demand from the very same customers for upgrades and new equipment when the tide changes.

Only wish that I had more money to buy at the current bargain price.
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Yup, the analysts are disappointed and in this market, the slightest rumor or earnings problems causes a massive psychotic selling episode <g>.

I am concerned though about a potential LACK of pent up demand for EFII products. I have noted that EFII's receivables are increasing significantly faster than sales as of late.

12/97-12/98 Receivables +86%
12/98-12/99 Receivables +42%.
Sales increased +19% and +32% respectively. Could this be a case of channel stuffing? If so, how long will it take for demand to return?

I don't own any EFII currently but I have managed to lose money on it in the past (dang it). I'm reconsidering a buy but will watch it for awhile longer before coming to a conclusion.
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