TSIS: WHAT IS GOING ON? Message Board

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

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To: BarbaraT who wrote (3772)	9/20/1998 3:54:00 PM
From: jmt	Read Replies (2) of 6931

I do believe you are being unrealistic on the stock price. I have had numerous discussions with the company, trying to break down revenue and earnings customer by customer. Your projections are far to optimistic. Frontier just signed. ATT will ramp up slowly. MCI is not yet signed. Noone yet knows anything but best case revenues, assuming all current business goes to TSIS. They will probably retain or outsource to other suppliers. TSIS is still a high risk penny stock, illiquid as not close to attracting institutional investors, and in a business with no barriers to entry. One year down the road someone could come in and undercut pricing to steal business. My model again projects earning of 4 to 6 cents this year. Assuming 10X earnings, a fair price is 60 cents. As they generate more income, the tax loss carryforwards will be used, reducing earnings by 40% (or requiring growth to double just to maintain the same earnings. As they sign more contracts stable revenues and grow, the price should improve. But IMO $1.80 in the near term is not likely. Good Luck jmt

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