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

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To: Mark Hill who wrote (335)10/16/1998 4:35:00 PM
From: Gordo  Read Replies (1) of 768
 
Mark,

Spoke with Rod today. Key points from our conversation:

1. They are taking a very slow and steady approach to rolling out the mattress product (similar to what they did with the Bowflex). They want to get it right - in terms of the commercial, mail-out brochures, video, etc. They will be adding customer testimonials to the video in about 2-3 weeks. Initial response is going well (similar cost per response to what they see with Bowflex). Mattress sales will likely not have any significant impact on financials until some time next year (still enough sales from the Bowflex product to meet sales and earnings targets for the next two quarters).

2. NASDAQ listing still planned, but not until a couple months after they have launched the mattress product - probably some time next year.

3. Will be holding a director's meeting end of this month. One of the topics for discussion will be what to do with all the cash that they are accumulating. Share buyback is a possibility.

That's about all for now. Hopefully we will get another pop later this month when earnings numbers come out.

gord
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