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Date:      Tue, 13 May 1997 16:17:29 -0700 (MST)
From:      Terry Lambert <terry@lambert.org>
To:        dennis@etinc.com (dennis)
Cc:        msmith@atrad.adelaide.edu.au, hackers@FreeBSD.ORG
Subject:   Re: if_de.c ????
Message-ID:  <199705132317.QAA11304@phaeton.artisoft.com>
In-Reply-To: <3.0.32.19970513175052.00ad7c24@etinc.com> from "dennis" at May 13, 97 05:50:56 pm

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> Because they posted $1.40 loss per share last quarter, and haven't
> had a profitable quarter in a year. Because their stock, which was 
> trading at 28 at the start of '95, is now hovering around 8. Because
> no matter what you think their economies of scale are, they cant
> compete with Taiwanese labor costs, and cant turn a profit selling
> against boards that sell for $35.


I still don't understand why SMC can't use Taiwanese labor so that
labor costs are no longer a valid discriminator for you, Dennis.

It costs the same for SMC to buy Taiwanese labor as any other company.
There is no global "sell Taiwanese labor to anyone but SMC" conspiracy.

Why can't they sell boards for $35 and make the same profit as the
clone vendors selling boards for $35?


Is it just that they are stupid?  Or is it that they don't want to
accept the profits available to them because the margin is "too low"
for them to be happy?  (ie: is it just that they are stupid, and in
severe denial to boot?  I know!  Let's "redefine the market"!).

If that's it, then in my opinion stupid companies deserve to go
under: stupidity *should* be penalized... how else can you disincent
it so that it doesn't happen again?  How will the human species ever
overcome stupidity if it's something we reward?  Do you understand
the principles of "pressured genetic drift" (tectogenetics)?
"Everybody!  Out of the gene pool!".


If that's not it, then it must be ignorance.  They need to be educated
on how market economies operate when there aren't protectionist nannies
availble to wipe their bottoms for them.  I suggest Demming; he did an
excellent job doing the same in Japan.  Then they can give up on the
appearance of stupidity caused by acting in ignorance, and maybe their
numbers will make you happier.


					Regards,
					Terry Lambert
					terry@lambert.org
---
Any opinions in this posting are my own and not those of my present
or previous employers.



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