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Non-Tech : Turnaround Plays -- Ignore unavailable to you. Want to Upgrade?

To: David Alan Cook who wrote (168)	12/30/1997 11:19:00 AM
From: David Alan Cook	Read Replies (1) \| Respond to of 206

Reasons Continued - TSSW -: 3) Company has a new marketing director - Walter Havekorst - who is an experienced sales executive with an extensive background in selling to the retail, corporate and OEM channels. * Look for a new marketing program to start in Jan. 4) Company has " Staying Power " as evident by its cash on hand and very low debt. A look at the Balance Sheet: ---------------------------- Current Assets Only: Cash and Equivalents: $ 740,510 Restricted Cash: $ 500,000 Investments $8,871,079 Total: $10,111,589 Number of Shares = 7,847,000 Current Assets - Cash / Investments per share $10,111,589 / 7,847,000 = $1.29 Percent of Price of Shares = $1.29 / $2.00 = 65% Does Not Include: Current Assets ( Not Used Above ) 1) Income Tax Refund Receivable: $ 32,790 2) Accounts Receivalbe, Net: $ 241,593 3) Inventories: $ 31,169 4) Prepaid Expenses $ 219,838 Other Assets ( Not Used Above ) 1) Investments: $2,085,080 2) Property, Net: $ 455,968 3) Other Assets: $ 31,169 * Total Liabilities is $3,423,000 5) TSSW's Financial Ratios are better than the Industry: * Debt to Equity: TSSW: 0.00 Industry: 0.14 Lower is Better * LTD to Equity: TSSW: 0.00 Industry: 0.10 Lower is Better * Quick Ratio: TSSW: 2.99 Industry: 2.58 Higher is Better * Current Ratio: TSSW: 3.28 Industry: 2.76 Higher is Better 6) TSSW's Profit Potential is Huge given that it sells at a very steep discount to the Industry Avrage: Price to Sales: TSSW: 1.62 Industry: 9.22 Lower is Better Target Using Industry Avg = ( 9.22 / 1.62 ) * $1.88 = $10.70 Price to Book : TSSW: 1.48 Industry: 11.75 Lower is Better Target Using Industry Avg = ( 11.75 / 1.48 ) * $1.88 = $14.93 ( Based on Friday's Close ) DC