Yes Gator....it sure feels like alot of positive developments are occurring at TTFC. Following are several points I made on RB last week.
1. Per TTFC's executive summary, as of 11/1/99, approximately 34% of the company's shares are owned by senior management, 7% by Axis Capital, 20% by institutional investors, 13% by Shephard Financial Group, 7% by "other" and 19% is in the float. That means only 2,900,000 shares are in the float.
2. TTFC's pre CLEC business is growing nicely by itself. Current year revenues are on pace to exceed $10 million dollars(See income statement for 9 months ended 9/30/99 at:
telefficiency.com )This will represent a 23% or higher increase over 1998 consolidated revenues of $8.1 million. Also, TTFC's pre CLEC business achieved profitability last quarter(FQE 9/30/99) and per TTFC's Executive Summary, they are now cash flow positive on an operating basis.
3. TTFC recently entered into a financing agreement for up to $30 million( now increased to $60 million) to fund new market expansion. See press release at: telefficiency.com
The Casey report details the economies of scale that would benefit TTFC in the acquisition arena. The Casey Report can be read at: telefficiency.com
In addition, acquisitions create more telephone lines that increase our CLEC potential.
4. TTFC has hired several Key employees during the last year including Jean-Marie Baudot to manage the new CLEC group and Donald Demelis as VP of sales and marketing. TTFC has also hired Roger Abbiss, founder and former Chairman of Optel Communications Corporation as a CLEC Consultant. These people have years of valuable industry experience that now will be of benefit to TTFC. We all know that the key to a successful business is quality employees and it is always a great sign when a company is hiring quality people.
5. THE CLEC POTENTIAL! TTFC currently has 10,000 customers who in turn utilize 70,000 telephone lines. TTFC would not have 10,000 customers unless they provided a good to excellent level of customer service. This creates customer loyalty and that loyalty coupled with the 20% CLEC price advantage detailed in TTFC's last press release ( telefficiency.com )
should lead to a successful CLEC campaign. TTFC's executive summary details that a telecommunications specialist named Vince Salvi, with the Oregon Law firm of Weiss Jansen Ellis and Howard, states that the current valuation rate for the Local Exchange Carriers in the United states runs between US$1,500 and US$2,000 per local line. The potential valuation for the CLEC part of the business is far north of our current share price. Then, the valuation of the traditional business needs to be added on.
6. To sum it up, I will quote from the executive summary:
"In addition to fundamental value, the customer base will allow for the successful marketing of high margin enhanced services, including internet access, voice mail, data services, cellular, paging, unified messaging, telephone systems and, in the future, cable service.
I am obviously long on TTFC. The stock went public at $4 per share in late 1998 and we are not even half way back there yet. I have high hopes future appreciation is ahead.
Do your Due Diligence....study the website and request an investor's package.
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