Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : TEAL -- Ignore unavailable to you. Want to Upgrade?

To: Bob Trocchi who wrote (113)	12/31/1997 12:28:00 PM
From: Tom Hua	Respond to of 160

Bob, It's so good to hear from you. Thanks for the compliments. I have always enjoyed your posts, respected your opinions, and admired your personalities. Glad your broker is recommending TEAL. I'd be most interested to hear his reasons for the recommendation. Right now, I don't have time to respond to your comments but will try to do so in a day or two. In the meantime, have a very happy new year's eve. Regards, Tom

To: Bob Trocchi who wrote (113)	1/1/1998 2:57:00 PM
From: Tom Hua	Read Replies (2) \| Respond to of 160

Bob, Just have to get the first post slot for 1998 <g>. You're right that I'm a big supporter of TEAL. Although it's not my largest holding (ASND is), TEAL is my pet stock for 98 and I'm not shy of being a cheerleader for this stock. Your findings are accurate. The company's recent performance is nothing to write home about. But I'd like to focus on what they have and the potential going forward. The expected Q3 loss has been announced. I think the company will incur additional loss in Q4 (ending 3/31/98). The benefits from its alliance with Tracor probably won't show up until Q1 of FY99 (ending 6/30/98). FY99 will likely show significant improvement. The $3.9 M charge last Q was for writeoff of potential uncollectibles and severance pay. I was not able to get details of the uncolectibles, I think it's about $2 M (but not sure). My guess is there will be another one-time charge this Q for additional employee termination charges, but the writeoff will be less than that of last Q. With recent announced changes, SGA will come down. Why I like this stock? 1. Good products. This is a legit company with attractive products in a niche market. My employer is a small customer of TriTeal and I have spoken to the users. They are quite happy with TED. 2. Market for TED will exist for some more years. Financial institutions (all brokerage firms for example), goverment agencies, research institutions (such as my employer) are heavy users of Unix workstations, and could benefit from TED products. 3. Recent problems were company specific and is not reflective of industry wide problem (unlike the HDD stocks). This is important because internal problems can be controlled and corrected, and I think the company is on track to do just that. 4. WinTED. It has generated insignificant revenues but could become a source of significant revenues in the not-too-distant future. In fact, WinTED could overtake TED in terms of revenues as the market WinTED serves is a lot bigger. PC Week has given WinTED rave review. 5. Master reseller agreement with Tracor, a veteran defense contractor, is a big big plus. 6. Most of all, balance sheet. With $33.7 M in cash, this company has the resources to weather the transition. Stock is trading at a discount from cash and book. I started buying at 2 1/2, all the way down to 1 9/16. Finally, since everyone is making predictions for 1998. I'm going to take my best shot: TEAL will trade between 1 1/2 to 5. But it won't see $4 until late July. And of course, I reserve the right to revise my predictions at all time <G>. Happy New Year! Regards, Tom