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

To: Doug Meetmer who wrote (863)	1/25/1998 12:16:00 PM
From: michael c. dodge	Read Replies (1) \| Respond to of 3247

Doug, N.O., Maurice, Jim, et al.....Earnings can make all that possible. And, earnings are clearly visible, at least to management ($1.05 to $1.15 this year; maybe $1.30 to $1.50 next year). In any event, enough to move the stock, enable a split, improve liquidity, decrease low-volume price volatility, etc. What is bothering me is.....if the overall market reverts to the mean, correcting from 22X earnings back to 16X earnings, we will not get relief on either the liquidity or the volatility issue. We might not even stay where we are today (even with increased earnings realized). I think the R&D level is right for the direction of the company (toward higher information-content displays), and I hope they maintain at least the 1996-1997 levels, viz.: 1992,2.2%; 1993,2.2%; 1994,1.5%; 1995,2.6%; 1996,6.7%; 1997, 6.0%. Earnings increases in late 1998 and 1999 will be the result of new products arising from the increased 1996-97 R&D expenditures. Did you notice they cut off the conference call at one hour? (The October call rambled on about an hour and 20 minutes.) That, and the extensive scripting, yielded a cleaner call. Anyway, how can you have a "Great quarter, guys !!!", when it results 90% from things you did a year ago ??? (Maybe, if you win the lottery.) No business process happens completely in 90 days, at least on the upside. It is all a result, not a currently-generated event. I am glad, however, that Buchanan has found the flexibility to suffer this point of view, if only for the now-one-hour of the conference call. Shareholders who would sell THIS company, after THAT conference call information, were not listening, or do not understand business, or both. (Hey, I don't have to be politic, I'm in cyberspace. <G>) Finally, don't you think Al Gore will be better for TFS, anyway ???

To: Doug Meetmer who wrote (863)	1/25/1998 12:50:00 PM
From: Noblesse Oblige	Respond to of 3247

Hi Doug.... I don't disagree with your conclusions. Splitting the stock is only the first step in getting us to where we want to go. As I have said previously, the "marketing" of a corporation's common stock (in the interest of all shareholders) is a PROCESS that must continue at all times. Wall Street won't be there only at the times that a management feels it needs it. If you wait until you want something from Wall Street to engage it with ongoing dialogue and communications effort, it is already too late. Have a good weekend.