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

To: dfloydr who wrote (1340)	4/14/1998 11:20:00 AM
From: raefon	Read Replies (2) \| Respond to of 3247

To the "thread", I have read all the posts. I wanted to review the comments of others so that I did not influence anyone else. I am pleased to see that the thread participants are generally satisfied with the quarter and the call. I am pleased to see the effort DRB and the rest of the TFS team put forth in preparing for and executing the conference call. The following are facts worthy of consideration: 1) while the earnings were within expectations, revenue estimates were around $20mm at Furman. How many times will Cihra reduce his expectations? 2)Earnings expectations were pushed out AGAIN. This is the third consecutive quarter that the company has reduced expectations. TFS suggested the numbers for the balance of the year were 10% high. 3)Company still can't(at least in my discussions with them) elaborate on a specific, consistent ongoing strategy aimed at attracting additional analytic coverage and institutional investors. Maybe they might have had an opportunity to use "stock" instead of "cash" if the equity had been valued more appropriately. clearly this was not the case. 4)The balance of 1998 revenues could be reduced again.... 5)With the need for expensive inventory, a significant capital expenditure program, and outside investments, this company will need a financing. When and how are still up in the air...this could be a positive as Noblesse has rationalized previously. 6)If in fact the marketplace is as large for microdisplays as TFS suspects, is $280-$300MM in capacity large enough? 7)If the top line is only going to grow at"30%", why do we need capacity of $280-300MM? TFS would not appear to need the additional capacity for several years...or will they grow faster?? I look forward to the comments of others.