SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Microcap & Penny Stocks : TSIS: WHAT IS GOING ON?
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: BarbaraT who wrote (3809)9/22/1998 6:47:00 PM
From: jmt  Read Replies (2) of 6931
 
I was great hearing from everyone, and a good opportunity for what was close to a one on one with Don.

Many good things potentially happening, if they can deliver signed customers.

We were close on out revenue projections, ending the July 1999 quarter at about $1.5M. Assuming continued growth, that would put the calender year end quarter at about $1.75M to $2M, in line with Don's projection of $7M to $8M.

THe tricky part is expenses. Gross margins are clear, but G&A will increase.

Tax loss carryforwards will be used up in 2 to 3 years, which gives time for revenues and earnings to ramp up before the 40% tax hit.

My take on the share buyback is it will not be significant in the near term. It will be a year before they generate enough cash to have that luxury. Maybe a small buyback at this price, a few hundred thousand shares.

But I have to be honest. Price projections of $7 to $8 per share are ridiculous. Given a PE of 15X, the company would require NET INCOME of $15M, which would mean before tax income of $25M. And they are talking now of Revenues only reaching $8M more than one year out. Even at current margins they would need revenues close to $50M to achieve this. I therefore quite frankly see these projections as misleading and irresponsible.

Now lets get down to business.

jmt

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News