All,
I called the company today over my concerns on the price action of the stock. Here's my notes form the call. I hope this helps.
Cheers,
Coz
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Called 8-21-98
Spoke with Greg Stesiak in Sales who was subbing for IR until Monday.
I expressed my concerns over the downward pressure on the share price today and he said all the selling was coming from a single source Night Securities. He felt that this looked like an MM game. I expressed my skepticism over these "MM games" as a reason for a down trend, and Greg said that aside, generally speaking, companies do not enter the market and try to manipulate their stock prices. It was his hope however that TSIS would be buying back shares at these prices. I asked for specifics on this, but he expressed was his hope, he had nothing factual, and I should contact IR on Monday to see if there is any information about that.
The Annual financials should be out no later than the end of October. This is based on a generalization of the lag time between closing the books and the release of the compiled audited figures. As far as becoming fully reporting is concerned, Greg said that Don is giving greater attention to putting this information together. He said there has been some reluctance to jump into this as the costs of being a fully reporting company eats into profits--once they are fully reporting this will be reflected in the annuals. They have felt for now it is better to let their revenues rise, but the process has started. They are moving towards being fully reporting.
I asked about the Intel deal. Greg said that it ain't over yet. The current problem is that although Intel loves TSIS's services, they expected Nasdaq to foot the bill in perpetuity. Nasdaq was only introducing this service to them, not providing it. Greg said "worst case scenario" is that TSIS cuts a deal directly with Intel. I suggested that a "worst case" is Intel walks, and he countered with even if they do, Nasdaq is introducing TSIS to 99 other of the top 100 companies. But he assures me that Intel loves the service.
Northwest is providing a much greater return than they had expected, and this will help the bottom line.
There was some discussion on the sales force. Greg mentioned how difficult it is for a small company to make inroads with major corporations, and their client list is a testament to the quality of their sales staff. Plus, each new customer gained makes it all that much easier for their sales people to make that critical first contact with a new potential client.
Bottom line... If you liked the stock yesterday, you own the same company today. The client list continues to increase; the revenues continue to rise.
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