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Technology Stocks : THREE FIVE SYSTEM (TFS) - up from here? -- Ignore unavailable to you. Want to Upgrade?

To: John Morelli who wrote (828)	1/22/1998 1:29:00 PM
From: Noblesse Oblige	Read Replies (1) \| Respond to of 3247

To the "thread," There is no point in addressing this issue with Reuters. I doubt that "misinformation" is the reason the stock is down. The most important issue is what I would consider obsessive "concern" with the first quarter numbers. Those that are "ungenerous" undoubtedly look at the first quarter probable results as not "sustaining" (remember that poisoned third quarter note?!?!?) the earlier quarter's results. All of this will be irrelevant in a mere few months, as the very high order rates begin to assert themselves in relation to the stock price. To further "complicate" today's lack of interest, it is my understanding that many of TFS's local investors are hiking around the golf course, probably rooting for Tiger Woods in the Phoenix Open. The problem, of course, is lack of liquidity and a reasonably unsophisticated shareholder base. Eventually, there may be greater institutional interest in this stock. Until then (and with this specialist) anyone that has 10,000 shares to sell (and chooses to do so when there is an inadequate book of bids) will have a magnified impact on the stock price. For investors, of course, it is the stock's *value" that is the important number, and all that the price represents (assuming you don't care about your marks to the market) is an opportunity to ascertain the opportunities currently inherent in that number. My own theory (for what it is worth), is that the shares will be in a trading range for the next few months (up until the report of the first quarter numbers), and then the strong business conditions we anticipate over the following 12-18 months will assert themselves in price. For market timers, it means "Not yet." For investors, it means "O P P O R T U N I T Y". Have a good day.

To: John Morelli who wrote (828)	1/22/1998 1:41:00 PM
From: Ariella	Read Replies (2) \| Respond to of 3247

John -- A letter to the editor at Reuters is in order. I've sent one, as shown below. --Ariella Subj: TFS report needed better Editing To: editor.reuters@reuters.com Dear Editor: Someone needs a calculator and a better editor at Reuters. I am a former Senior Analyst from Wall Street and must say I'm scratching my head today about the editorial decision to focus on Q1 revenues in the TFS article and headline copied below instead of the second half of the article that details the significant increase in sales expected in Q2, Q3, and Q4 of this year. A quickening growth rate in the latter three quarters might keep the percentage contribution of Q1 low, but it does not logically following that the number translates into a weaker quarter. Your article does a disservice to investors by misdirecting and misguiding readers and you should consider releasing an update on the story. Three-Five sees smaller ratio of revs in Q1 Reuters Story - January 21, 1998 23:44 %ELI %US %CN %RESF %RES TFS V%REUTER P%RTR ---------------------------------------------------------------------- PHOENIX, Jan. 21 (Reuters) - Three-Five Systems Inc on Wednesday said it expects new designs and an emerging pattern of seasonality may cause 1998 first quarter revenues to account for a smaller percentage of full year revenues than in 1997. Earlier Three-Five Systems reported full year 1997 basic earnings of $0.67 a share on sales of $84.6 million versus a loss of $0.49 a share on sales of $60.7 million in 1996. But only 19 percent of its 1997 revenues were generated in the first quarter. "We expect that first quarter revenues in 1998 may possibly account for an even smaller percentage of overall 1998 revenues," the company said in a statement. Three-Five, a maker of liquid crystal display (LCD) and light emitting diode (LED) panels for electronics, cited delays in customers' product designs and an emerging pattern of seasonality as leading to the revenue fluctuations. << Beyond the first quarter, Three-Five expects "significant growth" in 1998 based on current backlog and order allocations from a major customer. "In fact, growth during 1998 will likely occur in a patter similar to 1997," the company said. Finally, to accommodate growth Three-Five has decided to begin manufacturing products in The People's Republic of China in 1998. >> <<sent in italics in e-mail>>