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Technology Stocks : TSI TelSys Corporation - Satellite communications

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To: Robert who wrote (198)11/4/1999 2:52:00 PM
From: Ron Struthers   of 241
 
Robert, junior tech companies like TSI, usually trade at a multiple
of their sales revenue when they are moving from a development company to one selling their technology, Typically multiples of 2 to 5 times are normal and sometimes as high as 10 or 15, then there is the dot coms after this.

TSI is generating 12 months trailing sales of about $US10 million/year and appears the next couple of qtrs will remain at this
pace.

At Cdn$0.30, TSI has a market cap of approx. $US2 million. The stock
is trading at 1/5th its sales revenue. I have never heard of, or seen a stock like this trade so ridiculously cheap, unless it is about to go bankrupt and TSI is no where near this situation and has been profitable the last 2 qtrs.

Simply unbelievably cheap???

Ron
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