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Technology Stocks : Brock International (NASDAQ: BROC, the forgotten stock)
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To: Brad Davies who wrote (819)10/29/1997 11:08:00 PM
From: Roger A. Babb  Read Replies (1) of 928
 
Ron, I will take a shot at answering your questions.

1. BROC was NOT a great company in 1996. Bad management. Some of the higher revenues posted in 1996 were advance recognition of long term license deals. Bad medicine. New management (world class in my opinion) took over in early 1997. Huge writeoffs as they dumped the deadwood and corrected the finances. Now 9 months later we have a return to profitability using conservative accounting methods.

2. BROC has updated the current generation products, made the client base happy, and returned to profitability based on those products. The real growth will come in 1998 with their next generation products (NetGain) which are a real leap ahead of the competition. NetGain is all new, "Internet concentric", "push technology", and "thin client" based allowing the use of simple client machines equipped only with a web browser to remotely access the SFA apps and database located on a central server. This is hot new technology from the Ga Tech business incubator. NetGain will be demoed at the November 7th investor meeting.

3. I recently asked a BROC manager why they do not promote their stock better. I was politely told that they are busy developing products and spending all free time selling product to clients. Selling shares is not on their agenda. Said if they do a good job with the products and revenues that share price will follow. I can't argue with that logic but I do wish they would "court" the analysts better. The November investor and product review meeting is a step in that direction.

4. The float is estmated to be just under 2 million shares and I estmate that over 500,000 shares are held by members of this thread. At times we think we have seen a large seller around $5 but are not sure about it. But I a certain there is a large trader who loads his boat at around 4 1/2 and dumps it back at 4 3/4 to 5. I think he dumped today at around 4 3/4 probably hoping to buy back tomorrow. He seems to be playing from the long side with about 50k shares and trades in blocks. Can't see his orders on Island book. I think he accounts for a significant part of the volume and holds his positions for only a few days at a time.

Whoever the trader is, he is doing us a favor by creating some liquidity. When we think we are seeing a "large seller", often it may be this trader taking his profits on shares he bought on a previous dip. I think he bought on Monday and Tuesday morning and sold this afternoon for about a 3/8 gain.

I hope this helps. I would encourage you to attend the November 7th meeting in Atlanta to see the stuff first hand and share with us your impressions. I would rather you see it in person rather than depend on my "cheerleading".

Roger
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