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Strategies & Market Trends : Free Cash Flow as Value Criterion -- Ignore unavailable to you. Want to Upgrade?

To: jbe who wrote (98)	11/6/1997 2:01:00 AM
From: HeyRainier	Respond to of 253

jbe, thank you for providing the cash flow information with QSNDF. The company was in trouble years ago, and it seems that the company information you were provided with was cut off at perhaps the weakest point for the company. Here's how the earnings picture has turned out since 1995: 1994 1995 1996 1997 Mar -- -.07 -.04 -.02 Jun -- -.02 -.10 -.01 Sep -- -.01 -.03 .00 Dec -- -.14 .00 -- QSound is a major player in the 3-D sound industry. I became extremely interested in it when a major investor in the company approached me and spoke about the improving prospects of the company. QSound has struck a deal with Starkey Laboratories, the US's largest hearing aid manufacturer, to provide their products and technology for a digital hearing aid that is due for release around February of 1998. The fortunes of the company have indeed made a turnaround since '95. They were involved in some costly patent litigation, and it seems to be all behind them, so they have been able to focus their resources more toward the business itself. QSNDF will also be a beneficiary of the DVD boom as prices fall to the consumer "sweet spot." The industry QSNDF participates in has gathered strength, as shown by the technical behavior of some of its other competitors, SPAZ and SRSL. On a technical basis, the stock has traded in a base between $2-$5 for about 6 years, and with turnaround, implemented cost-controls, revenues more than doubling for the past few quarters, plus the future stream of revenues from the digital hearing aid from Starkey, I have much reason to believe that the current upswing in prices for QSNDF is for real, and will be the turning point that will finally lead this issue to break out of its 6 year base, which I believe will lead to instututional sponsorship, not to mention sponsorship from other technical analysts, momentum investors, and others like myself who will be adding to current positions once the stock becomes marginable(also known as pyramiding). Sorry it's taken so long to reply; I hope this answered your inquiry. Regards, Rainier Trinidad