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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 (1123)	3/24/1998 2:24:00 PM
From: dfloydr	Read Replies (1) \| Respond to of 3247

After hardly trading at all some days last week, TFS has traded 102,200 shares today last I looked. Is there news out there somewhere? I have not been able to turn up anything. I am sure I am not the only impatient investor out there given the price performance of this stock and the "ultra-low profile" of the company. If big holders are jumping ship ... Floyd Russell

To: John Morelli who wrote (1123)	3/24/1998 3:04:00 PM
From: Noblesse Oblige	Read Replies (1) \| Respond to of 3247

Hi Jaspert, John, As a matter of fact, you are right to assume that if I am selling TFS I would be unable to tell you. I have a legal responsibility to my clients to act as their fiduciary, so I must act in a lawful way that guarantees them the best prices I can "create." For me to "announce" publicly that I am selling or intend to sell would negate that responsibility to my clients. Having said that, however, I haven't sold a share. I have no reason to sell the stock (other than my ongoing dissatisfaction with senior management, which is no secret to any regular reader of this "thread."). I am still of the view that the first quarter will result in earnings of $.12 to $.15. There is tremendous leverage from even minute differences in revenue flow, and the balance of the year will show "explosive" gains in sales and net income. I am expecting to meet with Liz Sharp following the annual meeting, and will have a similarly sizeable shareholder with me at that time. The dinner will be two weeks after the first quarter numbers are published, and barring a dramatic surprise, my ownership position will remain just as it is at the moment. As I have said many times previously, based on my existing knowledge, it is my intention to hold this position at least into 1999. I am hopeful that the meeting will lead to some new perspectives and understandings on the part of management, as it is clear to me (a market professional) that there are many things that can be done to assist in attracting further interest to a stock that suffers from terrible liquidity problems. Having said that, I continue to be troubled at the nature of the trading in the stock, as several sizeable blocks have been seller initiated within the last month. Those sales came during a time when there is typically no commentary from the company on current earnings prospects. As you know, that policy has been in place for some time, so I am not overly concerned about negative "leaks," but I have no means to judge the reasons or urgency of the current group of sellers. I guess we will know in due course, but it shouldn't be lost on any reader of this "thread" that shareholders of this company from as far back as 1992 continue to remain underwater with this investment despite a very strong stock market and the near certainty that their investment returns would have been better had they merely stuck to the tried and true method of darts and the back page of the Wall Street Journal. Sometimes below average results can wear anyone out, even those with the longest time horizons. It must be very difficult (and probably galling) for shareholders to watch all their friends make money while their own TFS investment hasn't even treaded water for an entire market cycle. Not only that, but if you make a studied effort to go back and read all the annual reports published in that time frame, I would wager my last buck that every letter to the shareholders had at least one line in it that roughly said, "We have never been as confident as now in the future of our business." Arrogance is permissible when there is concomitant performance. So, as a dear friend always tells me, Michael Jordan could get away with it. Others, however, have to walk the walk after they have talked the talk. Perhaps there will be more shareholder accountability when there is a significant change at the top. Have a good day.