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

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To: jmt who wrote (6589)10/19/1999 11:14:00 AM
From: John S. Baker   of 6931
 
I'll have to check on this. My recollection is that TSIS provides the services to their telecom clients, who in turn resell it to *their* customers. The business strategy model here would be "OEM"-ing or "private labeling" ... or even, in the manufacturing sense, "drop shipping".

If that recollection is correct, I think you would agree that TSIS's A/R risk will be defined by the telecom's corporate payment policies, which currently are well-known through experience but certainly are subject to fluctuations in the future (as are anybody else's payment policies).

And that credit risk in most such cases lies with the intermediary, ie the telecom company.

But 'tis a point worth checking. I'll try to do so.

JSb.
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