In researching Telefficiency today I ran across The Casey Investment Alert. A bulletin put out On Aug 30 recommending TTFC as a strong buy up to $1.
Basiaclly he compares TTFC to CONV, saying it has a good shot of becomming the Convergent of Canada.
He says TTFC controls about 70,000 lines and says the lines have a market value of CDN$1000/line which equates to about US$4/TTFC share.
Telefficiency vs Convergent
Both install Nortel Equipment, both have similar end users, both provide about the same service, both have the same expansion plans. Convergent has 1000 employees, TTFC has 75. CONV is in 35 cities, TTFC is in just 5. But CONV only has 33,000 customers while TTFC has 10,000. CONV revenues were 61 million in 1998 with losses of 61 million, while TTFC had revenues of 8 million and losses of 850,000. TTFC expects 10 million in 1999 with a profit, CONV expects to double revenues and increase losses by 50%.
CONV has been able to grow rapidly with debt and equity financing. Until today's announcement TTFC was limited in their expansion plans due to lack of acquisition financing, now that has changed.
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TTFC has 15 million shares outstanding with 8 million owned by management |
