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

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To: John S. Baker who wrote (2588)6/9/1998 12:57:00 PM
From: Crossy  Read Replies (2) of 6931
 
John,
with a "static" approach as of now, not factoring ANY growth into the equation, TSIS appears correctly valued at $0.60. Margin is high, more than 30% and sales are at $2.5 million annually, using an implied sales estimation method where You extrapolate current month's revenues of $210.000 to the timespan of 12 months. That would result in $0.09 annual sales per share using 29 million shares for the calculation.

Now that means a PSR of 6.3, which is very ok in high-margin situations like this. However if growth holds on the way it does and the company won't issue more stock then we might arrive at PSR of less than 3 next year if the stock price is still at 0.57. This means from a dynamic perspective the stock is undervalued.

Just to sum up, because You mentioned ALYA, I think that ALYA is more undervalued than TSIS but that's just the result of an extrapolated PSR analysis..

best regards
CROSSY
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