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Microcap & Penny Stocks : TSIS: WHAT IS GOING ON?

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To: jmt who wrote (6578)10/18/1999 6:14:00 PM
From: John S. Baker  Read Replies (1) of 6931
 
"Expect this would add some additional administration, working capital and credit risk exposure to the operation."

From memory, I believe that the additional administration consists of 2 FTE's and whatever overhead they consume. (I reckon that travel and phones and FAXes and FedEx would probably be higher than for some other functions).

Working capital? Perhaps more reflected, as above, in S&GA than in a drawdown of capital.

And I'm not sure where the additional credit risk exposure might come from if, as I believe to be the case, they plan to still market *through* their primary (telecom) clients. Seems to me that any credit risk would be borne by the telecom co's and not by TSIS.

What do you think?

JSb.
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