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Microcap & Penny Stocks : TSIS: WHAT IS GOING ON?
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To: Whiskey who wrote (2489)6/3/1998 1:51:00 AM
From: Tobasco  Read Replies (1) of 6931
 
True, gross revenues are reduced for operating costs. But, based on the press releases TSIS expects a gross profit of around 70% and it was said, as I recall, that revenues could double with only a 10% increase in costs. Even if that 10% is on gross and not on the operating expenses amount that still leaves approx 60% to the bottom line! Assume the present operating expense level, about 325k per quarter, will be covered by increased usage from previous contracts and startup revenues from new ones coming on line.

Previous revenues were stated to be 130k per month and that grew by 50% which would be 195k, x 12 = 2.34m x 60% = 1.4m net for the year. Not bad for a company just expected to turn profitable this quarter.

Add GTE with 15m affinity calling cards per year at say 50% usage for 2 minutes each at say 25 cents a minute and that is another 3.75m per year gross revenue (the "doubling of revenue" in the GTE press release). Apply now 50% profit (down from 60% for still additional costs) and you get 1.875m net for the year.

The combined net then is 3.275m annually by 25m shares is 13 cents at a 20 PE makes TSIS a $2.50 stock. Six more months or another two quarterly reports should be all we need to prove this. So by year end 1998 we should all have a Merry Christmas!
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