Quack quack! Here's a quack, er quick update on RFIL...
I expect to see .04 to .06 for the third quarter. This isn't bad, but
not great either. They were hoping to do .07 - .10. I would guess revenues could be about $1.6 mil, but I was hoping for more like $1.8.
The main reason the stock is soft is the RF industry (phones, antennas)
is weak right now. Many RFIL shareholders are in this business - in fact many
shareholders do business with RFIL. The stock will tank easily if one
person dumps 10,000 shares, but it rebounds when buyers step in around $2.
Remember, there's two parts to RFIL - Connector and Link. Connector
chugs along and carries the company. Link is still struggling, and will probably lose a few cents this quarter. If Link loses two cents, then I'd guess RFIL's earnings will be closer to .04. If Link breaks even, they will earn about .06. Obviously Link is dragging the company down right now, as it has for a few quarters.
Anyway, a key for RFIL is Link's performance - if it
turns profitable the share price of RFIL will advance, IMHO. Link turns profitable after about $1.5mil in sales. They are about halfway there now for the six months.
Connector: They are making progress with Richardson, their big new
distributor, as well as others. The cable biz in growing. Link has a
military engineering project underway , and if it turns into an
order it would be very helpful. They could be shopping for a
business in the Far East.
Next year they are hoping to do .30 for the year, and more if Link is
profitable (hopefully about .05 contribution).
|
