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To: robert b furman who wrote (417)4/23/2000 10:32:00 PM
From: Sector Investor
   of 6947
 
Thanks Robert for a great post.

<<Huge in the future of the FOG Segment is the nice plus that they can be used in determining current flow. They also are primarily (at least initially engineered for motion determination).Two sensors can cover both x and y axis rotation ie tank turret / robot arm / satellite dish's stabilized platform etc.

The real key is developing the etc.>>

It's that "etc" that is truly exciting here.

We know about the communications potential which looks excellent for the foreseeable future.

We know about the lumpy military sales which are returning, and which bodes well in the near-intermediate future. If the military sales boom for the next couple of years, that's great, and it will do wonders for the stock, too, but the real trick is to use that success to buy the time to build other non-military markets that will be larger and more consistent.

That's where the real potential for KVH will play out.

Of your 4 concerns #1 has never bothered me. With all the knowledge I picked up in researching MRVC, which does optical networking, I can see that that move will prove to be the best move they have ever done.

But, I'm coming to this stock 2+ years AFTER this, and just as they are emerging from an extremely difficult period. I can understand that you, having been through the dark times could have that concern.

Concerns 2 and 3 I share, and your encouraging post lends credibility to my own "gut" feel here - supported strongly by the statements management made in the Conference Call.

Concern #4 is probably why they took out the $5 million revolving loan, which I fully approve of. BECAUSE, if they see a huge opportunity ahead for sensor products, the worst thing they could do is to not have the money to move quickly into these markets.

Getting first to market can be critical, because once you have major customers locked up contractually, a competitor usually has to have a "head and shoulders" better product/price/performance to force a switch, and that seems like a difficult challenge to me.

But, just getting there first is not enough, if they can't DELIVER volume quantities quickly enough. Having that loan in their hip pocket was another significant positive from the CC and the 10Q.

I have not met this management team, but they seem to be making all the right moves, and they seem very confident in their future.

I think they are still on track and the tunnel they have been in the past two years is almost over.


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To: Sector Investor who wrote (418)4/23/2000 10:54:00 PM
From: Pink Minion
   of 6947
 
The real key is developing the etc.>>


Ya gotta have sales people. You can have the best product in the world and it means diddly.

All we need now are people talking on their cell phones, putting on their make-up, surfing the web, and watching TV

.... while driving

But having two beers is a no no.

MH

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To: Sector Investor who wrote (418)4/24/2000 8:09:00 AM
From: dvdw©
   of 6947
 
Bob, Thanks for making that trip! Your report was beneficial to me as I am sure it will be to others. KVHI is a great little company, I hope to make the trip myself in June and if I do I'll hopefully be able to report as abely as you have.

Thanks Again,

Dave

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To: robert b furman who wrote (417)4/24/2000 8:20:00 AM
From: Sector Investor
   of 6947
 
From Yahoo! Some quuestions for you and other KVHI long timers.

messages.yahoo.com

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To: Sector Investor who wrote (418)4/24/2000 8:24:00 AM
From: robert b furman
   of 6947
 
Hi Sector,
Even though they have had negative earnings during their transition to FOG,they have continued to do all the right things.This has and will be my basis for continued support.

With MSFT being the dominant negative force of the day - I might just get my buying opportunity today!!!

Thanks for the post.

Bob

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To: Sector Investor who wrote (421)4/24/2000 9:02:00 AM
From: robert b furman
   of 6947
 
Hi Sector,

In 1997 Kvhi was benefiting from a multi-year contract with voice communication( INMARSAT) Trac Phone 25 and then Trac Phone 50.This contract was huge and gave them earnings without worry until the contract was completed.During this time period military contracts were running strong.

Management came out with Trac Vision for the marine application.This never really pumped up any numbers.

Management then bot the Fog technology and spent more than expected to finish the "almost pure science R&D" to what could become an profuct with commercial applications.

Management then came out with Trac Vision - Land Based and has been pleasantly surprised with demand.During my tour the production supervisor said their line capacity for land based was twice that of the marine application and they were a week behind in filling orders.

If there was a criticism I voiced over the years it is that they go for the tough to do applications first(with smaller demand).Then they roll into bigger markets at a later day.

This is arm chair quarterbacking admittedly, and I am far from in the middle of the technology questions.

Their frustration with partnering with communication companies(satellite launchers) is that proprietary data regarding future satellite constellations isn't easily issued even under nondisclosure agreements.So partnering is viewed with great distrust.Some of their credibility problem is their relatively small size.As much as I like KVHI it is important to remember that their total assets equal the cost of one satellite and teledesic is looking at 280 satellites.Sort of puts their wait and we'll be ready with the best perspective in place.

I wanted the mobile internet story to be just around the corner and I just didn't hear it.The entire industry must evolve for this to be a great market driver.DBS are there with tv and so is Trac Vision.One of the main problems with existing satellites is that they were designed to shoot down.Two way communication problems seem to be present in a similar way that haunts the cable compnanies as well.JMHO

Hope this helps out.

Bob

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To: robert b furman who wrote (423)4/24/2000 9:17:00 AM
From: Pink Minion
   of 6947
 
Two way communication problems seem to be present in a similar way

This is changing with the ka band dishes due out later this year (NSATF, GILTF)

MH

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To: Pink Minion who wrote (424)4/24/2000 10:35:00 AM
From: robert b furman
   of 6947
 
They seemed to be waiting for that moment.<VBG>JMHO

BOB

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To: david james who wrote ()4/24/2000 5:08:00 PM
From: robert b furman
   of 6947
 
Looks like the seller's are gone.KVHI traded like a rock today! Not bad for a down 270 point Nazdaq Slammer all day!!!


Bob

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To: robert b furman who wrote (426)4/24/2000 7:20:00 PM
From: akmike
   of 6947
 
That was just Sector in there holding up the bid all day. <gg> We'll never get any more bargain hunting at this rate.

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