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Technology Stocks : TNSI - Leader in the Electronic Point of Sale Industry

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To: David R. Helms who wrote (3)1/7/1997 10:51:00 PM
From: goober   of 11
 
David,

Youe got my interest, but a little surfing around turned up that TNSI is on WORTH's recent list of stock's to avoid. The following are cited: "Transaction Network Srvs. (Nasdaq: TNSI) $13 * Sharply falling prices * Intense competition * Rising capital expenditures".

It seems that intense competition from IBM and COMPUSERVE are expected. As 3rd qtr was reported on 10/10, I suppose they will be reporting 4th quarter within a matter of days--that may provide me with guidance. What do you feel that their growth rate will be going forward, now that they are facing new competitors? I wouldn't consider buying unless their projected growth can top their P/E (currently 22). I don't know much about the company, but at a quick glance it sounds a bit risky. Why are you so bullish?

Goober
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