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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 (890)	2/2/1998 2:49:00 PM
From: Noblesse Oblige	Read Replies (2) \| Respond to of 3247

To the "thread," Another day with total lack of interest. The Dow is up nearly 200 as I write this, and total volume in TFS is 9100 shares. What makes it worse is that the stock is actually lower on the day. It is indeed unfortunate that this company has no corporate finance business to do, though I am not convinced that such "inactivity" is right for a variety of reasons: 1) A financing to cover this year's $ 14 million in capital expenditures (perhaps in the form of a convertible debenture), would create some additional analytic coverage. It is my belief that the inefficiency in the pricing (just take a look at Kopin, for example, to see how "cheap" TFS truely is!) is due to lack of interest on the part of professional investors. Giving a pair of investment bankers a reason to follow this company's progress could only help shareholders by improving liquidity and the stock price. 2) You raise capital when it is "cheap" to do so. Undoubtedly, convertible debentures could now be sold with very favorable terms, and would leave TFS very liquid with other growth opportunities going forward. The company doesn't actually need the money, to be sure. At least I don't think so. However, it is clear that creating some investment banking fees...the only thing the "Street" appears to respect these days...is the easiest and most timely road to better analytic coverage. I don't see how being "rigid" about it helps very much. Sure, we don't need the money, but it isn't as though you wouldn't get something valuable in return. These shares are simply priced too cheap...and the only reason is a paucity of information available to the professional investors that can make it happen. Have a good day.