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

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To: goober who wrote (4)1/8/1997 7:18:00 AM
From: David R. Helms   of 11
 
Hi goober,

The URL you refer to is at:
worth.com

It was published on 10/11/96 when the share price was $15 and it subsequently fell to $11 (and it was ATT not IBM they said was the competition). Back in April 1996, the stock was $35.

First my motivation: I'm a shareholder (bought as $15) and would like to see the price go up. If I didn't think the stock had good potential, I would have sold when it dipped below $15.

Why did I start this tread now and not when I first bought the stock last October? Hyping the stock for hype sake won't fool anyone, I'm not a good enough liar to convince you or anyone else to buy the stock if its not worth it. Now, I believe TNSI has a good chance of continued growth in the POS industry. I point to the AMX deal. I wonder just how many POS vendors competed for that contract? I'll bet ATT was trying, but they lost didn't they. That's a long term indicator of growth. In the short term, the 12/31 quarter is the biggest quarter in the POS industry, including TNSI. I expect TNSI should benefit from all the sales of bunny slippers and Tickel Me Elmo sales. Also, TNSI has just come out of a double "V" base which is generally a good TA indicator.

I agree the competition is intense. TNSI gets 1.77 cents a transaction right now and it takes a lot of sales to generate profits with the per unit value of their product. TNSI has had to cut into the profit margin to compete with the other industry vendors. But TNSI does (primarily) POS. ATT is too big and diversified, COMPUSERVE is going south fast and there are others. Yet TNSI keeps announcing new major contracts. The bottom line is that they are able to compete successfully and win which leads me to believe that the validity of the Worth comment is now wrong IMHO.

Do your own homework and I wish you good trading,

David
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