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Gold/Mining/Energy : TS TELECOM (www.tstelecom.com): ASPIRING TELECO -- Ignore unavailable to you. Want to Upgrade?

To: geoff-t who wrote (880)	11/18/1999 9:04:00 PM
From: Ciao	Respond to of 1762

Geoff, you did an outstanding DD job on TOM. How were you able to get such updated and detailed information? Do you have connections in the securities industry? To all: Has anyone noticed the new TS website! WOW! They must be up to something!

To: geoff-t who wrote (880)	11/18/1999 9:09:00 PM
From: John Trudeau	Respond to of 1762

Geoff, if the trade talks stay on track, and the PR (that I've been expecting) is issued, it will be a very merry Christmas. As mentioned in my previous posting, the timing could be perfect. The right market at the right time, with the right Company = $$$$. P.S. Where did you get that detailed info from... it's great! JT

To: geoff-t who wrote (880)	11/18/1999 10:27:00 PM
From: M. Merriam	Read Replies (2) \| Respond to of 1762

Geoff, A few observations and comments: 1. The subsidiary of TOM has been approved for listing with Hongkong's GEM (Growth Enterprises Market) board, a NASDAQ-like exchange. Its stock number is 8003. Just checked the GEM website. It does not list TOM subsidiary among approved companies: hkgem.com 2. It has finalized or in the final stages of raising HK$97 million through an IPO for 30% of the company. This gives a valuation of HK$323 million or roughly Can$65 million for the subsidiary. 3. TOM should worth at least this much since it owns 100% of this subsidiary. Based on roughly 20 million shares outstanding, TOM's shares should worth at least $3.25 a piece. Assuming that your figure of HK$97 m is correct for 30% of company, that would leave TOM owning the remaining 70% of the HK$323 m subsidiary, not 100%. Thus, TOM would hold CAN$2.28 of assets, not CAN$3.25. Holding companies usually trade at a discount when the operating company is publicly listed. Given your figures, I would expect TOM to be trading somewhere between 50-70% of the $2.28 figure. Question: Will TOM have any significant assets other than its ownership of this subsidiary? If so, that would affect the value. Comments or corrections anyone? Mike

To: geoff-t who wrote (880)	11/18/1999 11:30:00 PM
From: speculatingvalue	Respond to of 1762

Geoff-t, I'm impressed with the quality of your information. I asked Randy how much they were raising and other details of the IPO and he said that he couldn't disclose it except via press release. My main complaint with this company is that they don't let you know what they are up to. If what you said is correct, then they should have the existing company and prospects PLUS $3.25 in the kitty in cash from the IPO. The only downside is a potential 30% decrease in revenue because of giving up part stake, but revenues should be way up with the restructuring. My feeling is that someone is trying to hold the stock back so they can purchase retailer's stock cheaply. Don't get sucked into selling! House 002 put in a 75,000 buy order in the 70's, but when it started to run, they put sales for 75,000 shares above a dollar to hold it back down. Given this news, I'm going to put in a buy with TD after I post this message.

To: geoff-t who wrote (880)	11/22/1999 7:21:00 PM
From: speculatingvalue	Respond to of 1762

If I read it correctly, the prospectus says they are selling 79 200 000 x $1.50 = $118.8. Using Mike's figure of 5.3 to 1 for the exchange rate, they are raising $22.4 million. It doesn't say anywhere how many shares TOM will keep, but if it is 30%, then it implies that there are 264 million shares outstanding. (It is funny that this information and other data on the financial position of the company isn't in the prospectus.) Again, if TOM has 30%, then that would be 184.8 million shares. TOM's share should be 184.8 m x 1.50 / 5.3 = $52 301 887. That works out to roughly $2.62 CDN per share. I think the parent may trade at a premium rather than a discount, but even discounted, the current share price looks cheap. Any mistakes in my analysis? Does anyone know the number of companies and the relationships between them? Will TOM be strictly a holding company or does it have other assets?