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No exploration risk, a real company with technology most companies need!
My source says that (NASDAQ BB:TPII) is the next Presstek.
Presstek:
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Sept.18/96 Close: $60 US/share
52 week high: $200 US/share
Market Cap: 959 Million
TPII: Brought to you at $3.60 US yesterday, closed today at $4 US/share.
Shares out: 10.8 Million
Market Cap: 44 US Million
52 week high: $5.75 US
1) Automated Migration - Several thousand lines per hour.
Manual - 10-12 lines per day.
Migration is the converting/transferring from IBM mainframes to client/server
systems. They have successfully proven the technology works.
TPI (Transformation Processing Inc.) a subsidiary of Samual Hamann Graphix Inc.
can be reached at: (905) 812-7907. THEY ARE THE ONLY FIRM THAT HAS PROVEN
AUTOMATED MIGRATION OF IBM SYSTEMS.
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They are in the process of setting up strategic alliances with multi-billion
dollar players. The big boys. Take a guess, who would want this technology?
Things are happening and the stock is a time bomb. This is no Vancouver promo
play. This is a real company with real valuable technology. If could be
much higher next week and the sky is the limit.
I just can't say enough about this opportunity. I bought some. Looking for
triple back. The way meetings are going it is very realistic.
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2) The year 2000 problem. This company has the capacity to deal
with the year 2000 problem and also has the ability to estimate the size
of problem the company has. I have included an article explaining the 2000
problem from Business week.
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From a TPI report:
The marketplace opportunity is defined as follows: (February numbers)
IBM SYSTEM GLOBAL ESTIMATED 5 YEAR TPI MARKET SHARE
INSTALLED BASE MIGRATION MARKET SHARE POTENTIAL
MARKET OBJECTIVE
S/38 & AS/400 350,000 35,000 15% $525,000,000
S/36 150,000 75,000 20% $562,500,000
Mainframe 100 billion 1 billion lines 25% $500,000,000
lines of COBOL (1%)
The profit opportunity is huge, in that once software is built for packaging
and
the arrangements are in place, overheads remain relatively small. The principle
is "build it once, sell/use it many times!" Based on the under achievement of
our plan by 80%, at a price-per-project that is less than one-half of what we
are currently actually receiving, we are very comfortable with a gross revenue
forecast of over $300 million in sales within five years as a minimum
performance
objective.
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Press Release: August 19/96
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TORONTO (BUSINESS WIRE) Aug. 19, 1996 Samual Hammann Graphix Inc.
(NASDAQ BB:TPII) and Transformation Processing Inc. (TPI) Monday annouced that
they have entered into a bibding letter of intent and plan of reorganization
which shall constitute a contract between the parties.
Samual Hamann Graphix Inc. will acquire 100 percent of the outstanding shares
of Transformation Processing Inc., making TPI a wholly owned subsidiary of
Samual Hamann Graphix Inc., making TPI a wholly owned subsidiary of Samual
Hamann Graphix Inc. Total outstanding shares after the reorganization shall
not exceed 13 million.
The heart of TPI's technology is CyberPlan. CyberPlan represents the core
technology that provides technical services and solutions without equal in
the world. TPI is able to bring a highly specialized and proven software
re-engineering methodology to the marketplace, which will allow TPI to
provide a highly profitable and proven service to the migration of IBM and
other legacy systems using automated software re-engineering techniques.
TPI has set a goal to become the world's leading provider of strategic
legacy software migration solutions and services. TPI has brought together
the technologies and experience to deliver services and products which will
make TPI the world's only single-source organization capable of re-engineering
application software from IBM mid-range and all mainframe systems so as to
provide equivalent functionality on today's and tomorrow's computer platforms.
The Gartner Group has estimated the North American marketplace to be over
$1 trillion (US), the global opportunity has a potential to be twice that
of North America.
Press Release: August 27/96
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TPII is proud to announce that TPI, its wholly owned subsidiary has completed
the commercial testing of their migration software.
TPI has successfully ** UNPLUGGED ** five of 400 Peugeot Automobile
Manufactures computers. The five being a proof of concept project that
involved migration from IBM S/36 to IBM O/S 2 Client Server Operating Systems.
To date the company has completed the following types of conversion with
Magnal Facts:
IBM System/36 to the Wang VS
IBM System/36 COBOL software to SCO UNIX
TPI has also provided ports of the MAGNAL application to the Hewlett-Packard
9000 and IBM RS/6000 UNIX operating systems.
This now provides the company with documented testimonials outlining the
companies highly proficient software, which will position TPI as the leader
of the migration industry.
TPII will begin the process of creating strategic alliances with the major
players in this field to pursue the extensive use of TPI's migration software,
while at the same time the company begins to build the SWAT (System Workers
Addressing Transformation) Teams needed to solve the global migration problem.
The 2000 problem:
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From Business Week / August 12, 19996
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"Panic in the year Zero Zero -
Can the financial world reprogram its computers in time?"
***********************************************************
It's 11:59 pm on Friday, Dec. 31, 1999. As the ball drops in Times Square,
computers at some of the world's financial institutions shut down. With
their lifeblood cut off, these banks, brokerages, and insurance companies,
most of which operate in a limited way over the weekend, are forced to close
their doors, at least temporarily. Other financial firms whose computers
are still functional try to keep operating. But because linkages among
financial institutions are so elaborate, even healthy companies begin to
falter. By Monday morning, billions of dollars in transactions have been
disrupted or aborted. A domino affect goes into play, and in the ensuing
confusion the entire financial world teeters into chaos.
The pitch for a Hollywood blockbuster? No, it's the daytime nightmare of
one of the most technologically advanced and well-managed firms on Wall
Street, Morgan Stanley & Co. It is deeply worried that the computers that
keep the financial world alive have not been properly programmed to make the
transition to the next millennium.
"IN DENIAL" Wall Street is just one of many industries facing the "Year 2000"
problem, which has been getting some press lately. The inability of many
computer programs to make accurate calculations after Dec. 31, 1999, will
effect averything from the Internal Revenue Service to computer-operated
elevators.
The world of finance, though, is especially vulnerable. "Because of the
interconnectedness of worldwide financial institutions, the absolute worst
case, albeit highly unlikely, is a global financial meltdown," says Kevin E.
Parker, Morgan Stanley's head of information technology. Says William Bautz,
senior vice-president for technology at the New York Stock Exchange; "Due
to the unique nature of this business, everybody has to have the problem
fixed, or they create problems for somebody else."
If the specter of financial chaos isn't enough, plaintiffs' lawyers are
already viewing securities firms as juicy targets for a year 2000 litigation
bonanza. Investors could sue their brokerage firms over failed trades,
unpaid interest, or bad investment decisions caused by incorrect date-based
calculations. Law firms are looking into holding boards of directors liable,
says Kevin Schick, research director at Gartner Group Inc.
Yet despite the risks, the securities industry has been slow to respond, in
part because they are not anxious to spend the estimated $4 billion it will
cost to become year 2000-compliant.
"Here is an industry that prides itself on risk assessment and management,"
says Schick. "And yet, when faced with this potential crisis, they are in
denial."
The problem began some 80 years ago. Because of the limited memory space of
early computers, programmers didn't want to squander four digits writing
out, say, 1962. So they designed software to store dates using only a year's
last two digits. The conventional wisdom was that programs would be replaced
before the year 2000 rolled around. But many are still in use. So when
1999 turns to 2000, many computer programs will go from 99, or 1999, to
00-- or 1900.
If left uncorrected, this will throw the financial world into convulsions
like it has never seen, say Morgan Stanley's computer whizzes. That's
because it threatens the underpinning of all financial transactions: the
accurate recording of time. The markets are utterly dependent on dates.
There are trade dates, maturity dates, settlement dates, and payable dates,
to name a few.
If these dates get screwed up, Wall Street firms' computers will no longer
accurately calculate any number of things, says Micheal B. Teirnan, a vice-
president at cs First Boston. He is also chairman of the Securities Industry
Assn.'s Year 2000 subcommittee, and testified at congressional heearings in
April. Clearing and settlement of transactions could break down. Stocks
held electronically and checking accounts could be wiped out. Interest
might not be properly credited to accounts. Customers might be denied
access to their accounts. Deposits or trades might not be credited to an
account, and customer's funds would not be available. "If year 2000
problems are not addressed, the consequences may be catastrophic, from a
business and economic perspective," Tiernan testified. And there's a
further complication: 2000 is a leap year, which means computers may not
assume there is a Feb. 29.
Yet common reactions are: The computer geeks can fix it, or it can't really
be as serious as all that. Schick estimates that only 20% of the industry
is taking action. Very few securities firms have done audits of their
computer programs, the first step toward geting a handle on their situation,
he says.
In fact, fixing the problem is far more time-consuming than might be
imagined. All of the older programs used by all of the financial firms must
be revised manually. Morgan Stanley alone is spending tens of millions to
change 3 million lines of code. "It's ugly. You have to inventory every
piece of code and then manually fix it," says Parker. Programming work must
be done on the weekends, since most of the programs are in use during the
week. There are only 179 weekends left until Dec. 31, 1999. "You can't do
it on the weekend of the greatest party of the millennium," says Joshua
S. Levine, a Morgan Stanley managing director whose office overlooks Times
Square. "The sand is running out of the hourglass."
Morgan Stanley plans to complete the job well before Jan. 1,1999. Then the
firm will spend 1999 evaluating the efforts of its thousands of
counterparties in correcting their year 2000 problems and deciding who to
stop doing business with. "We can't assume the risk of being caught in a
domino effect," says Morgan Stanley Managing Director Eric M. Kamen.
OVERBLOWN? The white shoe firm is also trying to get other financial
institutions and U.S. government regulators to focus on the problem. In
June, Elaine LaRoche, a managing director at Morgan Stanley and president
of the Public Securities Assn., had meetings with Treasury Secretary
Robert E. Rubin and Securities & Exchange Commission Arthur Levitt Jr. to
sound the alarm. Sources at the meeting with Rubin say he was surprised
and sobered. "It is viewed as a technology issue," says LaRoche. "But
this is a settlement, counterparty, and systemic financial risk problem."
She is referring to huge risks that could be created if millions of
transactions between thousands of institutions could not be promptly
completed.
Despite these alarms, many institutions are reluctant to make a big
investment to solve the problem. "Here we're spending tens of millions
of dollars, and it's not going toward anything productive or improving
our competitive position," says Parker. Firms that spend the necessary
money get to stay in business. And some of those are plotting to take
advantage of their competitors' possible demise, says Schick. "We have
players looking forward to the great market crash of zero zero," he says.
He thinks as the firms run out of time to fix their 2000 problems, they
will discontinue certain lines of business or even fail.
Of course, not everyone is as apocalyptic as Schick and Morgan Stanley.
Renee Nalitt, one of Chase Manhattan's main year 2000 techies, says:
"For the most part,we're already in pretty good shape." Securities &
Exchange Commissioner Steven M.H. Wallman does not believe the year
2000 presents systemic financial risks and says the issues are being
addressed responsibly. George Munoz, a Treasury Dept. assistant secretary
who heads a year 2000 Interagency Task Force, says Treasury will be ready
by yearend 1998.
The NYSE and Securities Industry Automation Corp., its trade-processing
arm, predicts the transition will be seamless. Why? In June 1996, the
industry went from processing trades in five days to three days, a
potential back office disaster that went without a hitch. "There is
no chance of the industry not making the changes that are necessary
in time," says Michael Reddy, who heads the securities industry year
2000 unit of EDS Corp. He could be right. But if he's not, the next
century will start with an unwelcome financial bang.
Cheers,
Warren
www.infodine.com
Send "subscribe" to infodine@supernet.ab.ca if your not already signed up.
Disclaimer:
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