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

To: raefon who wrote (1513)	5/28/1998 1:28:00 PM
From: dfloydr	Read Replies (3) \| Respond to of 3247

As promised, Liz Sharp responded as follows: Subject: Re: Now 5 questions Date: Wed, 27 May 1998 17:02:55 -0700 From: Liz Sharp <LSHARP@MAIL.35SYS.COM> To: dfloydr@swlink.net Hello Floyd: Thanks so much for your patience in waiting for a response. The SID show has kept me, and many of us here at TFS, busy for the past couple of weeks. But the response we received was quite positive and we're looking forward to developing further some of the potential customer and media contacts that we made. In response to your many questions: 1. With regard to announcements, please note that we actually issued two press releases last week, one on our new VP Marketing and Sales, about whom we are very excited. Radu has an impressive technical marketing background and will provide us with added support for the future direction of our products. We also announced our demo of an upgraded LCaD technology which was exhibited at the show. Regarding orders and other types of announcements, I know you're aware that we have a set criteria for announcing news, whether that news relates to new production orders, cancellations, delays, etc. Basically, if an item is material, it is announced. That will continue to be the case. 2. With regard to brokers picking up coverage, rest assured that new analyst coverage has been, and remains, a priority for me and for Jeff Buchanan. We are in discussions with several organizations that could provide added coverage, and we are hopeful that added coverage will soon be announced. I am not at liberty to provide any further details on either timing or the companies with whom we are meeting. 3. With regard to the transition, this event was planned to occur over the summer timeframe, and that is occurring as I write. We will no-doubt make an announcement when the hand off has been completed. Otherwise, there is no specific date I can give you. In addition, please bear in mind that David Buchanan will continue to be quite involved in our technology issues even after that hand off occurs. 4. The "talk of Siemens buying Motorola" appears to have died down. I trust you no longer require an answer on these issues. (Note:I had asked what if any relationship TFS enjoys with Siemens .... maybe that European medical device order they got a few months ago? ... if not, could bode poorly for TFS.) 5. Finally, please know that our system is very well maintained by an in-house MIS group. However, they do not control the activities of our carrier. If our system is ever unaccessible, it is generally due to that provider and not a situation we can control directly. If it should occur again, please give me a call on the phone. I'll be happy to respond the old-fashioned way. In person! (This in response to my observation that messages to Liz are intermittently returned to me as undeliverable.) I hope these answers address your questions adequately. Regards, Liz Sharp In all, a very measured and direct response. Nothing to stir the blood. Nothing to strike terror to one's heart. The analyst coverage question is a really tough one. For a long time now, TFS has been trading so little that no analyst or firm could justify coverage based on commissions. Few institutions could consider such an illiquid stock. Most days I could not sell 20% of what I own and I am not a mutual fund. Someone has got to start seeing "PROFIT" as the motive for covering/owning the stock. The stock is now less than $6.00 above the price it sold at when it looked as though the roof had fallen in and the company was a goner for sure. Earning are up. Earnings visibility is up. Sales are up. Backlog is up. Technical and intellectual property assets are up. Capacity is up. Client base is broadening. Financing is sound. Good management has deepened. Transition plan is good. People at TFS must be as frustrated as I am ... at least they are getting paid to wait. Most companies this good could not hide from the bulls in this market if they wanted to. Here we sit at 11 times forseeable earnings with lots of new stuff on the horizon. Is TFS coated with "stealth paint"? What is it going to take for this company to get noticed? A buyout by another component maker? If I were one I would jump on this puppy.