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Gold/Mining/Energy : Direct Focus Inc. (DFXI)

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To: Mark Hill who wrote (37)5/17/1997 12:30:00 AM
From: trilobyte   of 768
 
Also to all,

I also talked with Rod Rice; I was starting
to wonder what the hell is going on with the
stock price. He couldn't find any better
reason to explain the decline in the stock
price than the company is generally unknown
to the financial community and that BFX hasn't
been profitable for very long yet. The company
did not announce any negative forward looking
statements. He said it would be one of his
top priorities to expose BFX to Bay/Wall street
people by talking to brokers, analysts, etc.,
and seemed to mention that he would have the
opportunity to do so after the 2nd quarter
(maybe some conference, or something?). Anyway,
he's got tons of shares/options so he's not
particularly happy with the 50% decline we've
seen.

I threw some numbers at him: REvs 25 Million,
profits 20-25cts and said he was very
comfortable with them. The infomercial cost
140 000 to run during the past quarter and
generated a profit. Ran in California and on
the East Coast. He did say that margins may
be somewhat down because of the greater
costs of running the infomercial, but sales
should shoot up. Expects the company to
remain cash flow positive. Said he'd be working
to get a presence for BFX exercise machines
at the retail level. Seems they're getting out
of this "sole-shoe" business if I understood
correctly to focus upon the high end products.

News release will be out on Monday and will
deal with the progress of the informecial
campaign to date, I believe.

Hanging in there, unhappily,

CIAO: DID YOU GET YOUR SHARES YET!!!!!

trilobyte
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