>>>I wonder if one reason people don't get extremely excited with
TSIS is their low sales. If you're looking at Sales to stock
price vs. earnings, TSIS isn't that catchy.
IMO, When you dig into their client list and margins, it's exciting. <<<<
You are right on. I spoke to Larry at IR yesterday and he couldn't understand why the price was not moving with all the good news. He blamed it on the short postion. I have a couple of comments to make on that front.
A pure P/E, P/S, free cash flow (they needed $2M to finance operations the last qtr). the stock is expensive. The current price already reflects some of the future growth. The news just reinforces this.
The short position comment was based upon his view of the volume. I would very much like to know how volume can be interpreted this was. MM's trading at no spread between themselves seems to happen with many of these stock, and while I am new to the penny's, i have yet to see a short squeeze. As I mentioned to larry, if there is a short position, the best way to beat it is performance.
Then there are the liquidity issues that keep big investors away. That to can change with upward momentum, but not overnight.
Also if the market is lucrative, it will attract competition from well capitalized competitors. Until TSIS gets a commanding market share, this will also keep the price lower.
As far as revenue, it appears each new contract generates between $5K and $10K per month in revenue. They have added 14 customers since april.
In april AT&T contributed $120K in revenue for a special analysts meeting that was likely a one time event.
Hope this helps. The next quarter numbers if good will go a long way towards credibility and upward momentum. For example, if they earn a nickel in the quarter, project the year at 20 cents, attach a 10x P/E and this should be a $2 stock by the end of the year. I hope they can reach the earning.
Good luck and happy investing.
jmt |
