To: HRAKA who wrote (1028 ) 4/4/1998 11:57:00 AM From: John S. Baker Respond to of 6931
> Do you know the projected EPS for '98/'99? < No, I do not. And I doubt that anyone else does, either. Why? Because there is no model for this company. We cannot look at TSIS and say that it is "very similar to ABC Company" and therefore earnings should be a percentage of revenues. What I, personally, am relying on is the fact that the audited results show tremendous improvement over the past year, and the UNaudited results since then show continuing improvement. Intentionally I am not repeating all these numbers because they are available in previous posts and directly from the company. I also sense, though I cannot prove or demonstrate it, that the management of the company has made strong efforts to "clean up its act" over the past year. There were earlier contracts ... years ago ... with a stock promotion company that did not go well -- now terminated and written off. Until a few months ago, they had so-called "sales offices" in which hired guns for the company sold shares in the company directly. That arrangement has been terminated. They produced audited financials for the first time. And they have a view toward becoming listed on the NASDAQ. I have visited the company ... seen their office and computer spaces ... looked the employees straight in the eye ... observed what was being worked on on their desks ... etc, etc, etc. Modest spaces in an industrial park environment, no polished marble lobbies in a skyscraper building, etc. I did not stay until closing to see what kind of car everybody climbed into, but I reckon they are not all driving Lincoln Towncars ... or Porsches. I attended the Annual Meeting, and wrote about it here. You really should go back and review the messages about the time of the Annual Meeting in January. At the meeting, the President stated that all the infrastructure was in place for massive growth. And that he could double the business with only an incremental 10% in costs. Coupled with gross margins being discussed earlier as being in the 80% range. This tells me that, if they don't stumble, a LOT of every new dollar will flow directly to their bottom line. I am invested because I believe this may well become a money machine. And I have doubled my holdings since the Annual Meeting. Now please go back and read this entire TSIS thread as part of your DD.