It always helps stock investors if management services fix costs through multiple lines of revenue. Here is a case of a company that retails its products as brands, supports private label ventures, integrates as an Other Equipment Manufacturer (OEM), and encourages wholesalers as well. Every conceivable business angle of the Audio & Video Equipment Industry has been covered.

Wireless control has already become a norm in the home electronics area. It is only logical for customers to veer towards universal remote control aids. The latter gains value as increasing pieces of home equipment switch over to the electronic mode. A universal remote is set to become ubiquitous in every home. Therefore, the core business of this company is front and center of emerging consumer choice.

The Audio & Video Equipment Industry is not immune to the general state of the economy. It does not require any great stock investment expertise to realize that the short-term prospects for home entertainment may be dimmer in 2008 than during the recent past. This normal economic phenomenon should be seen in its true, transient light. It is not significant for the long-term value of a universal remote control device for the modern home.

A European bank has downgraded Universal Electronics Inc. (NASDAQ: UEIC). This is a response to management guidance that 2008 will be a relatively challenging year. The management guidance is truthful and diligent. The same is not true for the concerned bank’s own credentials and derived asset valuations, which may be a reason why the good banker’s advice deserves to be ignored in this case.

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