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Technology Stocks : RGFX Raster Graphics

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To: Fred Fahmy who wrote (329)10/14/1997 4:17:00 PM
From: darren_   of 593
 
Lets get this one going again.

EnCad earnings tomorrow will dictate the trend of RGFX until next Tuesday when earnings come out (10/21/97). Today ENCD is down over a point on big volume. Lots of RGFX insider selling by in the last few months. S3 filed on the 9th for shares to be sold by two persons in the UK - probably from the ColourPass merger. This will be the first full volume quarter for RGFX's P5k, including many consumables that were not available in Q2.

Yale and MIT were among the insiders selling which may be related to the 6 color imaging, but could potentially be a new product. The company is in the process of setting up a third party equipment leasing division.

Q3 is usually a seasonally weak quarter for RGFX but last year they had an unusually strong Q3 which could make this quarter look bad by comparison but I have a gut feeling that the seasonal weakness may not be a factor once again. I work in the sign business and I almost had to cancel my vacation because there is so much work.

I have a few questions that I was hoping someone could answer.

- Is this leasing division going to be a seperate entity or will the financial performance be pooled with RGFX?
- The S3 filed on Oct 9 state that ther were "9,554,558 shares outstanding at September 19, 1997". This is down from the numbers used in the last few quarters. Has the number of shares outstanding decreased or am I missing something here? Also note that the number of outstanding in the Q2 report decreased by 75k to 10.148 million. Has RGFX been buying back stock?

Thanks,

Darren
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