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

To: voyager.ed who wrote (1505)	5/26/1998 11:21:00 PM
From: Noblesse Oblige	Read Replies (1) \| Respond to of 3247

Hi Raefon, Voyager, I have received a few emails from people that have told me they are having difficulty contacting management. What isn't clear is whether that distance is the result of a policy decision or inadvertent. And, with TFS, honestly it is hard to tell. Management has never quite learned that when it is unavailable (even if for what it believes is a good reason), the market will come to a conclusion about that "distance" and make negative assumptions about the business. That would particularly be the case with this company, which not only has surprised shareholders with the disastrous news some years ago of the Motorola order cancellation, but which more recently didn't communicate "pushouts" of important programs until explanations of a couple of quarterly conference calls. The market abhors a vacuum, and the absence of news is equivalent to "bad news", at least in the short run. Say what you will, all long-term shareholders know that management hasn't exactly been forthright with shareholders, preferring to avoid commentary on existing business conditions during the quarter and explain results "post" the relevant period. Thus, no one is ever "prepared" for even modest positive or negative shifts in quarterly business, and in the view of this writer, this affects valuation negatively. In short, the market always prices for negative surprises. It appears to be doing so again, sad to say. And, now we are shortly going into the last month of the quarter, when company policy precludes meaningful dialogue with outsiders. Following this company is hard work. And, to date, (and for the last four or five years), not particularly remunerative. I am beginning to wonder, considering there are literally thousands of other companies to invest in, why any of us bothers? Have a good evening.