To: Creditman who wrote (529 ) 3/31/1998 11:24:00 PM From: jtechkid Respond to
i was looking for the quarter which was around 58cents. first, not unexpected imo. highlights-phd revenue growth 100%per year-hardware-growth 35%per year-consulting business flat growth.second, converge-done test pilots in done in latin america-two of them argentina-VEN- expect orders from one of them soon -highlight the future of the very impressed-very impressed3, cybercard will cut expenses dramatically and only involved in the development not marketing-reduce cost huge -will get royalty fees.the company is getting geotech stock on investment where the doubled their money on -give them more cash.4, book value around 8 dollers-5. dssi has spent around 15 million dollers developing without outside money or no dilution.in all not great ,not awful-i'm betting the future not the past. NEGATIVES. i , pr is just awful-should be fired-need a phd to figure it out the company2, one has to better manage expense and get focused-good signs reducing expense side cybercard-should sell phd-commit on converge and hardware business, 4, no relationship with wall street -5. this is a holding company -example-i own cmg information(cmgi) holding company for internet stocks it has gone from 11-58 this year on the increased valuation of lycos(which they own)and the anticipation of more spinoffs of their internet stocks-cmgi lost over 50 cents last quarter-not a big deal as with dssi they spend a ton of money investing on internet-which is not making money. the key with dssi is most important is they have to get more friendly with wall street and investors-should call dssi and hammer them on that-201 529 2026 i believe. where are we headed? again the growth outside tower is around 30% annually-which is not great considering the money they have spent but it does not hurt because it was built within not with adding shares. as i have stated i believe in the meter reading business and tower semiconductor company. valuation- well dssi is trying to find a way to divest tsemf tax free-worst case 1999-if tower says hits 30 next year and dssi divest it=13.35 in stock more than a double-how much is the computer division worth-its doing 40 million in sales -with around 30%growth-its not worth zero-but granted dssi is not knocking the cover off the ball. the big wild card i see converge if they get one order everything changes fast -i see them again getting 10 million doller order this year-20-40 million next year-if i'm close stocks going to 50-simple as that-the big problem i see is not really the company but how they market themself-pr is awful -management does not seem shareholder friendly-ir lady is a joke does not call people back-which is strange because all their OPTIONS are above the market-they more to win than any of us. i'll let you know anthing else. again, i think we are in the first inning of a nine inning game with meter reading but the pr of the company has to change for any success.
