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Technology Stocks : Hello Direct (HELO) - an overlooked internet beneficiary -- Ignore unavailable to you. Want to Upgrade?

To: Dr. Bob who wrote (1)	7/10/1998 4:44:00 AM
From: Sid Turtlman	Read Replies (2) \| Respond to of 153

Robert: From what I understand, sometime in May a venture capital partnership that had funded the company in its early days liquidated and distributed its assets, including over one million shares of HELO, in kind. So the partners opened up their mailboxes and found a wad of certificates for various companies, none of which they bought directly. What usually happens in those circumstances is that a goodly number of the shares get dumped, creating artificial pressure on the stock. Numbers will be out next week, I believe Tuesday. I think EPS will be up slightly, maybe 8 or 9 cents vs. 7 cents. Starting in the second half of last year with the installation of new management, HELO started a program of cutting out low margin products and adding to its outbound telemarketing staff. This may make top line growth modest and add somewhat to expenses, and the second quarter tends to be seasonally a bit soft. According to the CEO interview, Q3 should start showing the effects of the program in terms of faster earnings growth. What I am hoping is that, with the release of the earnings report, the company includes some information about the growth of its website sales. Once investors figure out the implications of constant reductions in catalog expense per dollar of sales, the stock should do well.