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Bill--My sense is that Horizon will raise the bar for Walthers and Walthers will have to make some changes to stay competitive. Horizon is clearly growing very fast and will soon have economies of scale that are similar to those of Walthers. Horizon is expanding their product line at a more rapid rate than is Walthers. with all of the acquisitions that Horizon is making, they must have some venture capital behind them, while Walthers seems to be a family run business. If I were Walthers, I would take the Horizon threat seriously. Do I think Walthers will go out of business--no. But is it possible that Horizon could replace them as the pre-eminant supplier of model railroad stuff. I could see that happening over the next several years.
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