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Technology Stocks : DII Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Rosemary who wrote (1623)	4/20/1998 12:04:00 PM
From: Sandra	Respond to of 1845

Rosemary, Actually I am doing very well......I am conservative, and I feel that is a plus......Ive been burnt on a couple, but have made up for it 100 times over with other stocks.......Dont leave my PC all day! When they are out of clothes around here, or need to eat, they call me..LOL! Sandra

To: Rosemary who wrote (1623)	4/20/1998 8:57:00 PM
From: rich evans	Read Replies (2) \| Respond to of 1845

Its time to jump of the DIIG bandwagon again. I know you never got off but me? I just listened to their 1 hour cc. Here are some interesting items: Gross margin decrease from 19.1to14.2 was result of orbit operating losses and Multech AUSTIN. Multech austin is not yet ready for commercial business just IBM. When they get the Plating lines ready which will be soon Multech Austin will be ready to go and take in business. They can't right now as at 100% with IBM. Margins expected to be 14% for Multech Austin which is good. So we will see good results soon.Another interesting item is the HP business. It is/was their largest Dov customer but it decreased from a run rate of 51 mill per Q to27 a large decrease because pipeline was filled and program ending. But despite this Hp decrease sales increased for DOV as you can see so more than offset, Non HP business therefor increased 8.3% giving over 32% annual. When and if new HP programs hit and ramp you will see an even larger increase in DOV. This plus Multech Austin coming on line should make for great results. Also I did not know (and Creditman didn't tell me) that Diig has gotten into the backplane business with Raytheon their first new customer and they are expecting 99 to be a good year in this business. As to PCBs in general they confirmed that "the chinese are coming , the chinese are coming" both from Mainland and Taiwan but still in the lower layer counts 4-6 up to 8 and not effect Multech quickturn and probably not Austin because of linked cross selling strategy with DOV. They also confirmed Paul Ks and 18acastras theorys on globalization and size. They want and are becoming global. Some of their new customers are large swiss firms (name ? Matrox and ATram)and are building in Cork, Ireland and Malaysia. They mentioned goals of building in East Europe and China. (Sounds like Flexf huh) Warranty and Service work small but needed as extra sales incentive.Trying to move customers up from component board assembly to complete box build but want to stay away from screwdriver PC work and do high tech and small box building like handhelds. The margins and stuff are in their release. Focusing on Geographic diversity, and high tech design thru box build and service. Margins for Dov not expected to increase lbut revenues will bringing more bottom line similar to other larger ECMs. Convertibles are calling most likely and will issue the shares so figure the 31 mill dilution. But they bought600000 shares so far on buy back program of 1 mill. Will save about 3.2 million a quarter on interest when convertibles gone. I look to see this happen and then owe only about 86 mill plus leases and expect IMO they will act on expansion and global plans.Did not talk about ORbit. Business is nicely divided by segments with Data/telecom seeing fastest growth. Inventory turns and asset management improving . Now up to 10.5 turns. Conclusion: Look for ---good make that great things from here on except for Orbit.I'm glad I owwn a lot of this stock and hope they put to me the $25 shares in Septmember. Stock should respond. Rich