PHOENIX (Dow Jones)-- DOW JONES NEWS 08-19-96 4:59 PM.
Three-Five Systems Inc.'s (TFS) board authorized the repurchase, from time to time, of up to 1 million common shares. In a press release, Three-Five said it currently has about 7.8 million common shares outstanding. Three-Five designs and manufactures user interface devices for operational control and information display functions in products of original equipment manufacturers. -- END
TFS was once a high flying stock caught up with the other tech type
stocks in the market upswing. They were manufacturing the display for
Motorola cellular phones as well as for other companies. Unfortunately, Motorola comprised up to 80% of their business and due to the aggressive price competition in cellular phones, Motorola switched from their more expensive display (and more profitable) to one of TFS' less expensive display. Profits tumbled and so did the stock. TFS has since expanded their customer base and is turning things around.
This is a well capitalized company without any long term debt that feels their stock is priced to low. The stock repurchase represents up to 15% of their outstanding stock and will increase the profit per share proportionately. In the last 30 days the stock has been floating around 9 or so. The 52 week low of 8 3/8 was on 8/18/96 and the 52 week high is 31 3/8. Since the announcement the stock has gone up to 11 1/2. In addition, Institutional ownership was up over 13% last period and should continue to increase.
It seems to me that this stock could easily exceed its 52 week high of 31 3/8 within the next 1 to 2 years, which would provide a very respectable return.
I would be interested in your views and comments. |
