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Technology Stocks : TSR, Inc. [TSRI] Good Earnings!

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To: Stephen Adnan who wrote (53)12/30/1996 12:32:00 PM
From: Young D.T. Nguyen   of 281
 
Hello, Stephen.

I guess you and I have seen this before.

I was lucky to have gotten in TSRI just about the right time. This company deserved much higher valuation, I thought. They have had excellent earning/rev growth and valuation way below their peers.

Even at a price of 50/sh, market cap is only 145 mils and price/sale ratio of only 3.0. with only 2.9 mils shares, they are going to split again very soon, IMO. With the Catch/21 product ready for commercialization, sales will probably explode the next 2 years (since companies will try to fix year 2000 problems 1-2 years before 2000 to ensure complete success when 2000 arrives). With the market estimated at hundreds of billions of dollars, there is no telling how far this company will go. It's possibility that they might be bought, considering the relatively low price tag of <150 mils.

I looked at ZITL, CTN, etc. Compared to valuations of these peers, TSRI is still very undervalued. so I think it has a way to go, although the ride may be a bit more rocky in the near future. But 1997 should be a great year for TSRI, IMO.
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