Dan:
I have taken the liberty of copying a post from JJ Jeffries, head of IR for TSIS. Perhaps this can best answer some of your concerns:
Subject: MR.JJ
Date: 2/11/99 10:02 AM Pacific Standard Time
From: Luke9313
Message-id: <19990211130253.21698.00000115@ng11.aol.com>
hope that you either call me at my toll free number 1-888-546-2957 or send
me your number so that I can call you at a convenient time with some of the
latest breaking news for the company.
Any idea on a time frame for when we will be a fully reporting company?
Answer: Our current target date for this is July 31, 1999. (Note: This
target date is subject to change upon review of the process by our
directors, our auditors, and/or the SEC.)
Any word on when and if MCI will be up and running?
Answer: We are currently developing 2 relationships with MCI.
First, (Conferencing Division) We are working with their conferencing
division to provide an Internet based Record and Replay service for their
client's conference calls. Although our relationship remains excellent, this
service this is presently on hold, awaiting their announcement of a full
suite of Internet based services (of which our service is one).
Second, (Prepaid Division) We are working with their powerful prepaid
division that specializes in selling phone cards to corporate clients like
Pepsi, so that Pepsi can put out millions of MCI prepaid phone cards as
promotional prepaid goodwill items. The MCI prepaid division will enter a
reseller relationship with us and has now installed T1 trunklines to our
operations department in San Diego. Our system is now tested and ready to
go, and we expect to announce this new and exciting relationship in early
March. We expect that this one business relationship will grow to be one of
the largest income streams for our company over the next 3 years and more.
What is the average cost to Interactive Telesis to provide these services:
Market Reach, Investor Reach, Record and Replay and TeleSurvey per company,
and what is the cost to Interactive Telesis's clients for the services
provided.
Answer: This begins to tread into areas of pricing and margins that we had
best steer clear of in order to protect our competitive position in several
areas. Suffice it to say that our net margins on several areas of our
services are several times the profit margins of many industries. Please
call me if you have further questions in this regard.
Many of our investors are understandably interested in how and when our
share price will appreciate in value. The reality of our stock price
increasing is in the hands and perceptions of the investing public. In good
measure, our stock price will increase when you, plus all our other
shareholders and the investing public decide to buy more shares in a very
good thing, that is TSIS.
So I guess you will be very interested in what we are doing to encourage
people to buy TSIS shares.
First we thought it might be good to build a strong and stable business.
Let me tell you this, we are in fact building one of the strongest and most
exciting businesses I have ever come across.
To date, this company has been in development. That means we have taken the
time and expense to develop and deliver some very exciting new technologies
and services based around our original IVR concepts. Our client lists now
reads like a who's who of Fortune 1000 companies. We currently serve AT&T,
Frontier ConferTech, Nike, Wells Fargo & Co and almost 50 other high profile
companies.
Our focus this year is the telecommunication industry and we are making
major strides toward a goal of reaching a dominant market share in our
record and replay (of teleconference calls) business this year.
Working with major telephone companies is a slow but steady proposition. We
are at several stages of advanced discussions and arrangements with several
household names in the telecommunications industry right now like MCI and
several regional Bell operating companies. We expect that you will see the
beginning of large relationships with many of these large clients this year
and then a blossoming of business volume in the year of 2000.
This year and next year we will extend our market focus into the
multi-billion dollar financial and healthcare industries so we expect
continued strong growth.
Here are some reasons why TSIS share values will likely experience some
strong upward pressure in the next 2 years:
1. High Earning Growth Rate – The company has been growing at 200% per
year over the past 2 years and has a sustainable future growth rate
potential over the next 3 to 5 years of 50% to 100% plus. The year 2000
looks especially promising.
2. Interactive Telesis (TSIS) has no remarkable long term debt and has
sufficient
cash to carry forward the operations. This means that we pay for operations
and growth out of pocket as it were.
3. Great Management Team – Don Cameron (CEO) is one of those proactive
company leaders that the management of large corporations like AT&T, GTE,
Ameritech, and MCI love to do business with. Mr. Cameron has earned the
respect of these major client groups and accomplished the startup and
development of a winning company from ground zero with very little other
than a great technical team, some serious chutzpa and very smart guerrilla
type marketing and excellent management. It seems reasonable to believe
that Don will take Interactive Telesis to the next levels of corporate
recognition.
4. Mike Hutchison (VP of Sales) is very capable and has proven
himself with the major contracts he has been closing with: MCI, Frontier
ConferTech,
and many more. Mike's former employer was the Anthony (Tony) Robbins
organization. Over a 7-year period he was instrumental in taking sales from
less than 2
million to over 50 million. Everyone who meets Mike is impressed with his
focus and energy levels. Our sales have skyrocketed since Mike has come
aboard.
5. Interactive Telesis has sustainable high profit margins.
6. On December 17, 1998 Interactive Telesis started billing on a large
permanent contract with Frontier ConferTech. This contract represents a
possible 70% to 75% increase in revenue within the next quarter. Large
potential
increases in revenue from MCI and Bell Atlantic contracts are being
negotiated. The stock price has not reflected any of these significant
developments yet.
7. Internet Capabilities – Interactive Telesis can do Record and Replay
of its executive telephone conferences over the Internet. MCI and Frontier
ConferTech are looking into contracting for these services. Also the data
from surveys
on the pre-paid phone card surveys can be accessed real time over the
Internet. Internet valuations are definitely not in the price of the stock.
In 2 years, up to half of the revenues could be due to Interactive Telesis'
value-added Internet capabilities. In the next months Telesis will be
playing up the Internet angle in its promotions and announcements.
8. In 2 years Interactive Telesis should be listed on the NASDAQ.
9. No Institutional Buys or Recommendations Yet – This is both a good and
a bad situation. This means you can buy value and is the reason the stock
price is not moving in spite of good news. But it also means that you must
be a patient investor and patiently wait for the buying frenzy to occur.
Most investors have little patience, but I have noticed the rich ones do.
10. It is quite possible that the stock is at the bottom of a 2-year moving
trend. This may be in debate now, but if for example, the price moves to $3
(no promises though!), we will all see that the trend was a large 2 year
base.
True believers of the company have been accumulating the shares and have no
intentions of selling till much higher prices.
You may notice that even buying $10,000 of stock is sufficient to move the
price 10%. So this stock has to be accumulated for large buyers. Once
institutions go after the shares, the price will move fast. Also with such
cheap price and the good earnings valuations, the stock is a buy-out
candidate. (We are not entertaining any buyout offers at the present time)
Next, as we develop the good story for our company in this turn-around year,
we will be promoting the stock to several investment advisors and
newsletters and media around the country to bring in a strong but stable
retail demand for the stock.
None of this is an immediate or even a tomorrow thing. The growth of the
company and its share value will be prudent and incremental until the day a
new critical
mass is reached ... then ... watch out!
So there you have some thoughts to ponder. Please tell me what you think.
I would like to thank you for taking the time to contact me, and I welcome
your phone calls to me, toll free at 1-888-546-2957. Of course you can also
e-mail me anytime at your convenience as well.
Best regards,
JJ Jeffrey
Manager, Investor Relations |
