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Technology Stocks : Network Connection , Inc. (TNCX)

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To: Ginko who wrote (24)3/18/1997 3:47:00 PM
From: lloyd wood   of 330
 
Tom, Now for the actual reply! The brokerage report that I have on TNCX which was done in late January estimates 1997 earnings of 24 cents on $18 mill in revenue and has 1998 estimates of 50 cents on 32.5 million in revenue. I do know that these numbers were shown to management and were presumably OK'd. I recently visited the company and was presently surprised and impressed by the quality of the picture and sound on the IFE system. They have 4 airline seats in their lobby with the IFE system installed. The company stresses that their core markets are education and training, so I give them credit for not over hyping the entertainment opportunity, yet IMO the entertainment part of the business will be important in driving the stock.

Today's mini panic seemend to be set off by news that some restricted stockholders had sold. I am told that no members of active management sold. I also understand that most of the early selling was retail, tho I can't say I know that for a fact. Also, because the warrants were recently called, there may be some continued selling near term.

regards, LW
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