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

To: Noblesse Oblige who wrote (855)	1/24/1998 4:24:00 PM
From: dfloydr	Read Replies (2) \| Respond to of 3247

If institutions do start to show interest it could get exciting because there are only about 7.8mm shares. Various postings report 1200 shareholders, but I know I account for four of those holders and those four holdings are not for sale. Hell, if I had the line of credit, I'd buy the whole company. Bet others are in the same position. This observation underlines your frequent suggestions that what we need is a bigger float. Will the institutions ever come to such a small feeding ground? Or will some one "buy the whole company"? Floyd Russell

To: Noblesse Oblige who wrote (855)	1/24/1998 5:29:00 PM
From: John Morelli	Respond to of 3247

Assuming institutional investors decide they have confidence in the TFS story and assuming TFS is a suitable investment given the nature of their investment objectives, constraints etc., what size investment do you think a "typical" institutional shareholder might undertake in TFS and what other parameters would guide their investment (for example liquidity etc.,)?

To: Noblesse Oblige who wrote (855)	1/25/1998 8:32:00 PM
From: voyager.ed	Read Replies (1) \| Respond to of 3247

N.O. I think your '98 revenue estimate is low, assuming little for unexpected 'turns' business or for last year's design wins (although most revenue will be later in the year), and hence low in earnings estimates also. I think Cihra is quite low for both years, but he has been surprised before by TFS. In the last 3 quarters he has been low by .03, .01 (or .02 couln't find Q3 estimate) and .02 in Q4. Turns, design wins, etc. will result in a slightly better Q1 in both revenue and earnings and a 'much' better '98 year than 30%. Take the numbers at 32% and 35% which I consider the low and high realistic revue projections and you come up with a much better Q1 than is being bantered. Two other points: 1)Is my 'gut level' instinct (uh uh), but knowing Mr. Buchanan from listening to the past two years - he does not want any negative surprise at all at this point - which would be a major TFS market negative for a long time, plus add to that his naturally conservative flair with cash and numbers, and I think he has left himself plenty of room for major upside surprises. If he said 30%, do you really believe that he didn't leave himself several % points for downside surprises? My last point on this is TFS is not spending all that capital in 98 for 30% annualized growth over the next two to three years. If my calculations are correct, they could 'squeeze' revenue of near $180 Million out of existing facilities - at 30% that's 2+ years (3 years is $210 M). If you move '98 to 33% and '99 and '00 to 35% you get +/-a $230 M, a much better real need for this space. By the way, my bet offer still stands. I think we all agree that institutional interest is necessary, and that when the stock moves up some it will be split - I think 3:2 split in very low 30's. So I don't see a $35-40 listed price. Have a good evening and a very nice Monday. Let's hope it continues Friday's trend. regards, Ed