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Non-Tech : Simula (SMU) -- Ignore unavailable to you. Want to Upgrade?

To: Richard Silvers who wrote (1358)	9/1/1998 7:39:00 PM
From: Noblesse Oblige	Read Replies (1) \| Respond to of 1671

Hi Ty, Richard... The value in Simula is the ITS division, and though it has taken longer to develop that I expected, its progress is inexorable. Simula now has Delphi and TRW on its Board, and it is pretty clear that there will a large number of new platforms coming on in the next six months. A check with Delphi will tell you that the company is on target for further agreements beginning some time in the fourth quarter. There is no question that the ball was fumbled in the latter part of 1997, as senior managers weren't able to control the rapid buildup of the 16G airline seat operations. It took a year longer than what I thought to bring the errors under control, and there is no doubt it has cost me (and my clients) some money. However, having said that, the company is now on the road to producing under both product lines, and it will show up earnings in quarter three and quarter four. There is no question that the "street" is disgusted with the delays, but some of us look at the investment process as more than a quarter by quarter race with the rest of the money managers. It counts more to me to be right in the end, and I am still of the view that this is "right," though I have been forced to sit through a very good market while being unrewarded (as yet) for my patience. One of the fascinating things about this business is that it changes every day, and if I might be permitted the flexibility to mix my metaphors a bit, the race doesn't always go to the swiftest out of the gate. We will see in due course. At this point, we are merely at the "three quarter pole." Have a good evening.

To: Richard Silvers who wrote (1358)	9/2/1998 5:58:00 PM
From: Ty Morgan	Read Replies (1) \| Respond to of 1671

as I look at a 5 year chart of UIS 5 to 20, thats a 10.5 % anualized rate of return, Much Less than 1/2 of the S&P500 return over the same period. I bought cisco in 1991 at an average cost of $2.63 per share, and still hold every share. Now that is a company that knows how to create shareholder value. There are too many good companies than to waste time with the current managment of SMU. Five years ago the stock was at 5 today it is at 9. You might be able to trade it, but it is not a good "investment". I hope I am wrong- for your sake. Good technology, but they don't know how to make a good return on capital. they are destroying shareholder wealth, and I'm glad it is not mine anymore. Enjoy the ride. Remember BBN Corp, the "inventors of the internet" who ultimately sold out to GTE. The best thing managment could do is sell the company to someone who know how to run a manufacturing business. The world would be alot safer place to live.