Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: michael c. dodge who wrote (1715)	6/8/1998 9:35:00 PM
From: Noblesse Oblige	Read Replies (1) \| Respond to of 3247

Hi Michael.... If TFS reports a 30 cent quarter in early October, AND if it looks like this will be improved on in quarter four (which would have to be viewed as likely, given that the end products in which the company participates are largely consumer oriented, thus leading to solid growth in revenues around the Holidays), the last three months of the year would be an optimal time to bring an offering. Moreover, this would be very beneficial in January and February, as the company's fourth quarter numbers would be coincident with analytic coverage following the secondary as well as strong seasonal money flows into the funds. That is how TFS would get the most bang for the buck. Let us hope that they are thinking six months ahead. To wait until the last minute to prepare for the offering would be another wasted opportunity. If it were me, I would be preparing for the deal prior to the third quarter earnings report, then publicly announce the intentions (and do the road show) following the report of the numbers on or about October 10th. There is no time better to sell stock than when the market will be demanding it. And, from the standpoint of assuring the final earnings numbers, I would insist that everyone from secretaries on up requisition everything they need to operate right down to their pencils. Keep the expenses tightly in line for a quarter and the benefit will be a higher stock price at the time of the deal, less dilution to current holders, and happy shareholders all around. I hate to think of the alternative. Have a good evening.