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Gold/Mining/Energy : Direct Focus Inc. (DFXI) -- Ignore unavailable to you. Want to Upgrade?

To: trilobyte who wrote (425)	3/4/1999 12:45:00 PM
From: whenitgoesup	Read Replies (1) \| Respond to of 768

I agree. The revenue is not needed...their objective is only to get listed in the US. The stock will hover about where it is now, until the offering closes. They will trade as DFXI.....dilution of about 10%.....and the insiders are able to cash out a bit without driving down the price of the stock. This is great for us as shareholders......and the insiders get some benefit for a job well done! After the close of the offering.....I would then expect a share split sometime late this year to help the stock to be more liquid. Ultimately, it would be pointless to continue on the TSE....and a de-listing can probably be expected down the line. ...Walt!

To: trilobyte who wrote (425)	3/4/1999 11:07:00 PM
From: Gordo	Read Replies (1) \| Respond to of 768

Trilobyte <I'm kind of wondering that this secondary is more of a vehicle to get DFX known to a wider (US) pool of investors than anything else> There are only two reason that DFX would use a public offering rather than merely applying for a listing on a US exchange. The first is if they need the cash (which they likely don't as the Bowflex product is still spinning out lots of cash, and the Nautilus acquisition was done with cash on hand. Last time I talked to Rod, he suggested that the mattress product would cost less than $1 million to launch so they don't need cash there either. The only place the might need some cash is if they are doing some major surgery on the Nautilus division). The more likely reason to do the public offering is to gain a wider US following. The underwriter will be forced to promote the stock in order to sell the offering, which is a healthy way to start life on a US exchange. Even though $25 million may not be a lot, I do question what they will be doing with it - I hope Nautilus doesn't require THAT much surgery. And it certainly won't do any of us any good having the cash sitting on the balance sheet. Here's a radical idea - how about a share buyback to reduce the dilutive effects of the public offering?