Hi Raefon,
We are in basic agreement. I see the telephone operator issue as a non starter.
On the other hand, Buchanan gave direction and information regarding capital expenditures ($ 14 million for the year, including $6 million in China, $ 3 million in Phoenix, and a major surprise to me, another $5 million in the Philippines), profit margin trends (including a discussion of the relevance of the Philippine peso), the relevance of the Far Eastern "contagion" (it is limited in scope), corporate sales targets (including a percentage breakdown by quarter), new sales developments in the new technologies, expected timing of revenues from the new products, and a reasonably direct discussion of the fourth quarter results.
Frankly, I don't believe he could have done it any better.
The only issue that remains left to address (assuming all future conference calls are similar to today's!) is the liquidity of TFS stock. I certainly hope that the management considers my suggestion of doing a "modest" split of the shares for the purpose of improving the depth of trading. If it were my decision, I would make it 3:2. On the other hand, two 5:4 's over the next twelve months could accomplish the same objective, but with the added PR benefit of giving the management two (rather than one) occasions to point to its "confidence" in the future of the business.
I know personally that the present specialist is sufficiently weak as to be somewhat of an influence on institutional investors when they evaluate their willingness to participate in this story. Over time, it is possible that a larger share count will mitigate his limitations and result in smaller spreads.
Have a good evening Raefon. All the shareholders have reason to be pleased with today's "performance." I will sleep better this evening than I have in weeks. <G> |
