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Microcap & Penny Stocks : TSIS: WHAT IS GOING ON? -- Ignore unavailable to you. Want to Upgrade?


To: ER Doc who wrote (878)3/26/1998 9:37:00 AM
From: Michael T Currie  Read Replies (1) | Respond to of 6931
 
> By the way, do you have a feel for what kind of PE ratios a company like this would have, or are all bets off when dealing with a start-up company like this?

I really have no good idea because so few of them are profitable. I have been sort of mentally using a P/E of 15, which represents a discount to high growth stocks due to the BB status. Next year, if they are still on the OTC-BB, perhaps a 25% discount to the EPS growth rate might be appropriate? Of course, no analysis of this sort will be worth a damn if the stock catches fire due to hype, momentum or other non-fundamental factors

> I talked with IR yesterday, and again came away very optimistic. As stated on an earlier post, news of another company sign-up is due any time, and this one is pretty big. Also, if the trial with Nasdaq is successful, Nasdaq would sponsor ITI's services to the Nasdaq 100, which would mean they would pay a flat rate as a perk for the company, and then the company would pay the usage fee. I guess they are trying to stop a drift of companies to the NYSE. Anyhow, ITI would still have to individually sign up each of these companies, but it would certainly give them a foot in the door.

Absolutely agree. Nasdaq sponsorship would lend a credibility that I think might cause a flood of new signees to the service. Might even cause short term cash problems (new equipment, staff, etc.), but I guess those are the sorts of problems they wouldn't mind dealing with.

Mike