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Technology Stocks : DII Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Creditman who wrote (1722)	10/14/1998 9:51:00 PM
From: jeffbas	Respond to of 1845

My theory is that they think it will help the stock -- that the 1999 cuts are less important than making current estimates. It looks as if the customer they are referring to was Bay, which would seem to be gone forever.

To: Creditman who wrote (1722)	10/14/1998 10:07:00 PM
From: rich evans	Read Replies (1) \| Respond to of 1845

My theory is that this is a disguised future earnings warnings. At the Q2 conference call they indicated a new customer for Q4 and earnings of 45-50cent. 99 was to be $2.00/sh. Now they are indicating the customer is lost and earnings forecasts need to be readjusted. So instead of about 1.15 for 98 We could be looking at $1. And 50% more than that for 99 is 1.50.Also they have confirmed that Orbit is a continuing problem and the manufacturing facility is not being used for which they paid 20% of our shares about but have now written it all off. So this announcement is negative IMO. But I own a lot of these shares still and am holding at these prices. I think the company will do well in the future but they need to work thru the orbit problem and get their global operations etc going. Rich

To: Creditman who wrote (1722)	10/15/1998 3:16:00 AM
From: Douglas V. Fant	Read Replies (1) \| Respond to of 1845

Creditman, "Hearing footsteps"- DIIG Management must be hearing footsteps.The stock sells at $10 1/2 share, but holds $3.21/share cash. There are 25 mm shares outstanding which means that you can buy a billion dollar in sales ECM for about $175mm- that is cheap! DIIG wanted to clear the air on the Bay Networks issue, but also suggested growth in sales of 25% annually is realistic and that top line growth would be around 50% next year (margins will widen). The trouble with Orbit IMO is outweighed by the good news from Multek's expansion into China .. So at $10/share, I think that this news will push DIIG upward- we'll find out starting tomorrow.... Sincerely, Doug F.