Randy & Stephen,
Thank you both for the info, although I was unable to access the press-release through Stock-smart. This is frequently the case and I don't understand why - I can get everything else through that site.
I have yet to buy Telepanel. ERSI's price performance has been very encouraging so far. Their management have a very good record. The additional $100 million they've raised does justify an increase in the stock price. They are now very well poised to market their product until break-even and profit. Philip suggested raising more cash might be a problem for ERSI; management have been able to inspire the necessary confidence.
Philip's report (Thanks Philip, received over the weekend) mentions that some feel the display of ERSI is better than that of Telepanel. I also heard this from another source. Communications to the ERSI labels is and always has been by radio. A cable is used for power. I don't think this is a serious problem. Shelves need power anyway for lighting, cooling, etc. Batteries may be a pain to change and increase the bulk of the label. Either way, I suspect switching from cable to batteries for power or vice versa is not difficult.
By the same token though, I suspect TLS might be able to develop more pleasing displays without spending an awful lot of money. I do believe display's are importnat in the retail business. Are you sure the capitalisation is 3:1? Last time I checked the difference was much smaller, although ERSI has had a good run since then. I am concerned that these online services such as Stock-Smart might give a misleading impression of capitalisation if they consider oonly the shares issued on, say NASDAQ.
If TLS is valued signiifcantly below ERSI, then I probably will buy some. I am not sure whether I'll use the profits from ERSI, or simply leave them where they are. Looking at both charts, you could make an argument that ERSI's management has done a better job selling themselves to Wall St. and The City, and that the recovery of one will stimulate that of the other. That ERSI's recovery is ahead of TLS might argue for puting some money into TLS.
By the way, Philip, Stephen, or anyone else, have the changed rules on NAsdaq brought the spreads in line with London and Toronto? And Randy, I hadn't noticed any hyping. - Aj |
