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Microcap & Penny Stocks : TSIS -News and Facts only for speedy DD on FAQ's
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To: Skip_S who wrote (61)6/2/1999 10:43:00 AM
From: Skip_S  Read Replies (1) of 70
 
This was created by my broker friend who is bullish on TSIS. He has visited the company on several occasions and discussed the future with Don Cameron. His clients including himself own a good percentage of the outstanding shares.

Note to Reader: Major changes since update 1 are as follows:

1. A higher sustainable growth rate because of increased cash and cash flow resources of the company as a result of profitable earnings and large contracts signed and those almost signed.

2. Increased earnings estimate to 6 to 8 cents for 2000.

3. Increased fair value 18 month price target from $2.50 to $5.00.

4. Note bullish changes and additions on reason 6.

Ten Reasons to Buy
Interactive Telesis (TSIS) Update 2 - May 1999

1. High Earning Growth Rate – The company has been growing at over 200% per year over the past 2 years and has a sustainable future growth rate over the next 3 to 5 years of 75% to 125% plus.

2. Low Future P/E Ratio - The stock is trading at $ .42 and is expected to earn 1 cent in 1999 and 6 to 8 cents in 2000. Note that reporting year ends July 30th. So this gives Interactive Telesis a future P/E of 4 to 6 in 18 months. This is the typical time period analysts will make future estimates for a growth company. A rule of thumb on Wall Street that has been violated to the upside over the past 2 ½ years is; if the future P/E ratio equals the future growth (i.e. forward looking) rate then the stock is considered fair value. So lets use a 50 P/E and 8 cents a share. This gives us a fair value of $4.00 on the conservative side.

3. Interactive Telesis (TSIS) has no long term debt and has sufficient cash to carry forward the operations.

4. Great Management Team – Don Cameron (CEO) is one of those proactive gentlemen that the management of large corporations like AT&T, GTE, Ameritech, and MCI love to do business with. I have had many conversations and several visits with Don and believe he will take Interactive Telesis to the next levels of corporate recognition. Mike Hutchison (V.P. 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) Robins foundation. Over a 7 year period he was instrumental in taking sales from 2 million to over 50 million. I have meet Mike and am impressed with his focus and energy levels.

5. Interactive Telesis has sustainable high profit margins (60 to 70%).

6. On December 17, 1998 Interactive Telesis started billing on a large permanent contract with Frontier Confertech. This contract represented a 75% increase in revenue. Large potential increases in revenue from MCI and Bell Atlantic contracts recently won. The stock price has not reflected any of these significant developments yet. The company is negotiating with 2 credit card companies for contracts dealing with automated transaction processing services. Each contract could double the size of the company.
7. Internet Capabilities – Interactive Telesis can do Record and Replay of its executive 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.

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. The stock is at the bottom of a 2 year sideways upward moving trend. This may be in debate now but when the price moves to $3, 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. I have notices 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 earnings valuations the stock is also a buy-out candidate.
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