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Microcap & Penny Stocks : ATMS [Tidel Technologies] -- Ignore unavailable to you. Want to Upgrade?

To: RAP who wrote (270)	10/23/1998 8:57:00 AM
From: DuGen	Read Replies (2) \| Respond to of 429

It may not be over yet. Customers didn't buy as many ATM's as they needed in fear of not being able to get those surcharge fees. Now that the bill has been defeated they will resume buying. It has become a cash cow. This is a bad set back in their growth, but they ain't dead yet. If it drops below a dollar, I might get some more. Here's my logic. These are not the big behemoth machines you see outside a bank. These are much smaller, suitable for small shop owners. Suppose you own a shoe store. Customer wants to buy. Forgot their check book. Tell them to use your new handy dandy ATM machine. You have now sold some shoes and made a little on the side from the ATM. IMO, if this company can get the sales staff and promotional items they need, it'll fly.... if not, they loose. I'm not betting the farm on this company, but it's worth adding on at these prices. DuGen

To: RAP who wrote (270)	11/4/1998 11:01:00 PM
From: RAP	Read Replies (1) \| Respond to of 429

Information on ATMS There has been some discussion of a reverse stock split. There is currently no discussions going on in the company about this suicide move – who would spread a rumor like this???. Earlier the company was talking about a reverse stock split to qualify for NASDAQ National. The plan was to have institutional support, reverse split, and then go on the National Board. Given the current stock price, this is no longer being discussed. I believe the management of this company knows that a reverse split would be a major disaster. The company is currently going through the 1999 Fiscal Year budget review. The company plans on providing the market guidance on FY 1999 revenue and earnings by the end of November (I believe the company will be very conservative on their guidance given past performance – ATMS knows they have lost market credibility). I believe the estimate will be for revenue around $50 million and EPS of $0.40. I will enhance my pro forma and provide a better estimate in the future. At an EPS of $0.40, this stock is trading at a P/E of 3.6 for FY 1999. The company is also going to review sales $ and earnings for October to determine if they are on track. My best guess is for revenues around $10 to $11 million in Q1 with earnings around $0.07-$0.08. The company is still in the process of selling the outdated products at a discount, but the new products have a higher margin versus the prior product line – I expect Gross Profit to be at historical levels. I also expect orders that were delayed in Q4 will appear in Q1. In this quarter we will also be fully taxable. Due to the lack of excess cash (working capital for growth and high inventory), this company is in no position for a stock repurchase program. If cash does become available (increase in credit line) the company will serious consider a share repurchase program. We should expect to see some insider buying in the next few months. I believe the senior management and board of directors should each buy stock. This would be a very positive signal to the marketplace. How can the company expect us to buy stock (or believe this is the deal of the century) when they do not buy at this level. If the management can only afford a few thousand dollars – this still send s a message, nothing wrong with that. Each board member should be required to buy stock. A number of board members can afford to purchase a significant number of shares, we have a few people with $. If they do not buy, then they do not believe in the company and should be shown the door!!!! We should also expect to see new board members. I believe one of the biggest weaknesses in this company is the lack of directors with experience in ATMS' industry and small cap companies. We need directors and management who understand how to increase shareholder value and market this company to Wall Street!!!!! We should continue to see an increase in press releases. I have heard this a number of times – this better be true. With the new marketing communications firm I have noted a much more positive tone in the press releases – it is about time!!!! We should see a new web page in the next 30 days. A prototype web page is currently being evaluated. I have been told this web page will have an investor section. I hope this is true. What message does the company send to the market with the current web page lacking an investor relations section? The prior web page had an investor section – what happened? The major focus for Tidel in FY 1999 is to achieve critical mass. This company needs to significantly increase market share and grow to a size, around $100 million, in the next few years if they are going to continue to be a player in this market. The company believes they have increased their market share in 1998. In early February a report will hit the street showing market share. I believe this stock is still undervalued, it should be trading at 1 3/4. Q4 was a very very very big disappointment! The damage is this company has lost significant credibility in the market. We need to have a phenomenal Q1 to gain the credibility back – the company understands this. With a strong Q1 and strong market guidance, this stock should move to the low twos towards the end of January. If this company does hit $0.40 EPS in FY 1999, we will again see $4+ -- we will see. RAP