I am not alone!! (I'd begun to wonder.)
The most recent Kostech update basically restated their recommendation of TCHP and quoted portions of the press release. Yes, they recommend it. (They also base their own portfolio on their recommendations much like larger investment firms - Kostech specializes in smallcaps.) Here's a copy of the previous update (which includes at least some of an earlier bulletin as well). They have models available at Disney and apparently have sent some out to various places for evaluation. I don't know if they've begun to ship to vendors yet.
As for the benefits of a relationship with Disney, one word... exposure! Think of the thousands of people who visit every single day... many of whom are potential customers.
Kostech Research Bulletin for 08-14-96
Telechips Corporation ( NASDAQ:TCHP ) will soon be announcing a
deployment of it's new touch screen phone at none other than Walt
DisneyWorld in Florida. The company is prohibited from putting Disney
Corp's name in the press release due to contractual relations with
Disney. However if you have been following Telechips as we have or if
you call the company they are more at liberty to discuss it.
This could well be the biggest turning point in the companies history
as several units have been installed in public places at the Magic
Kingdom for an apparent trial run. The locations thus far have been
in the Beach Club Resort, the AllStar Sports Resort, and the AllStar
Music Resort. The phones Provide visual and audible reservation
information, maps and directions. Disney has always been on the
cutting edge of technology and with a positive showing TCHP could
be in the door of a MAJOR customer. Public reception thus far has
been excellent with the public being delighted with the new interfaces.
It's important to note that nearly all previous trials to major firms
have resulted in sales for Telechips. It started with MassMutual
ealier this year testing the phone out for it's pension plan customers
which has resulted in ongoing sales to MassMutual ( read earlier review,
all subsequent updates are in the archive for paid subscribers ) Most
recently Tandem computers announced that it would be marketing the
Telechips phone for certain applications. This new demonstration
of Telechips product and staff to such a major corporation will
inevitably lead to further demos and sales to other firms.
Telechips stock has been ranging from 4 to 7 dollars in the past
several months. With the decline in the NASDAQ and no earnings or
story to hold it up, TCHP has settled around $3 per share. Earnings
have been produced but not yet enough to offset R & D expenditures.
With this deal coming to light along with other contracts in place,
TCHP will no doubt start rolling.
=======================================================
Here is the original text review..updates are in the archive
=======================================================
Imagine having a phone sitting on your desk that with one touch could
fetch your E-mail, print out your faxes and get stock quotes. Telechips
Corporation ( NASDAQ:TCHP & TCHPW ) has such a phone ( under development
since 1992 ) with a flat touch sensitive screen that has the power of a
386 PC and the ease of use of a common speakerphone. Working with such
strategic alliances as Microsoft and National Semiconductor has allowed
Telechips to develop and incorporate several unique features. The phone
sports a built in Windows compatible operating platform making the
corporate uses only limited to ones imagination. This means that it will
run most Windows applications that are currently in use as well as any
that are developed in the future.
For users with banks and investment firms running the system it would
mean simply touching the appropriate icon on your screen causing the
phone to automatically link and obtain balances, quotes on your portfolio,
current news or whatever other information is offered. When calling a firm
supporting this system instead of pushing 1 for sales or 2 for marketing,
the appropriate icons for these divisions as well as personnel would appear
on your screen. The marketing is thus far primarily focused on corporate
use and later will be targeted at the general public.
Recently Mass Mutual, a major pension plan provider chose Telechips phone
for distribution to its pension plan customers, allowing them to track
their funds more accurately and economically. The firm hopes to save money
with reduced calls and time spent talking with clients over information
that is better distributed electronically. I have been following this
company since last year before it went public in October at $5 per share
and $.10 for warrants ( expiration is 2000 ). The shares are now at $5 1/8
with the warrants at $2 but with the shipments of phones starting next
month it's not likely to stay at these levels for long. Telechips has
recently obtained a $1.2 million credit line with U.S. bank of Nevada which
it intends to utilize for working capital, including inventory. In December
Telechips announced signing on several new customers.
Now for the exciting part (for the definition of exciting look at a graph
of USRX over the last 3 years ) The proforma for this company estimates
that in the next 3 years a conservative EPS could reach $.76, factor in a
PE factor of 30 and you get a share price of $22.80. Now keep in mind that
this is a printed proforma and it is extremely conservative. Judging from
the response this phone received at the L.A. telephony show two weeks ago
it is in the realm of thinking that it will do considerably better than
estimated. I could write a book on the upside potential of this company but
I suggest you obtain and read the due diligence packet yourself by calling
Nelson Caldwell ( Vice President-Finance ) at 702-824-5555 or check out
telechips.com
Outstanding common shares: 3,863,000 Public float: 2,612,000
CONTACT: Telechips Nelson Caldwell 702-824-5555
Kostech SmallCap Research
kostech.com
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