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

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To: Crossy who wrote (2157)5/18/1998 9:14:00 AM
From: John S. Baker  Read Replies (2) of 6931
 
Not to quibble; rather to add info....


It might be well to consider TSIS as being a *service* company, rather than a *telecom* company.


Such a model would help make people more comfortable with very high growth rates (and very high margin rates).


In essence, TSIS has built a system, which is paid for. The system is scaleable, and they can add additional volume capacity to that system for a very nominal cost. That explains the high margins being discussed. And it explains how the company could grow not only revenues but profits at a *very* good rate.


To a limit, their expansion rate is determined primarily by how fast they can sign up new clients.


This is a nice model. Some call it the "cash cow model."
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