> I got eleven of them on the line, and not one would be a buyer. The most telling call was to CPQ...where I learned that annually, about the time the year ends and new budgets are structured, they get between 5 and 10 proposals just like the one I described from TSIS. CPQ added that, since the program is so inexpensive to establish, "Why buy it through a middleman." (Do any of you recall my query on the thread some weeks back about the low barrier to entry?)
> Indeed, CPQ has installed it's own system, and it does exactly what TSIS offers. CPQ retains control, and spends less. They use it to reach remote offices, for training, for internal product updates ...all the things TSIS's two systems provide. They also use it to provide meetings.
Are you certain that you described the TSIS system adequately? Since you cannot know TSIS's costs for implementation, maintenance and ongoing service, there is no way that any IR department could make a rational decision based on your phone calls. AT&T as a major client is very revealing. Here you have one of the nation's largest telecoms providers contracting for telecoms services. Does this tell you anything about the efficiency that TSIS has built into their systems?
Most companies are contracting out non-core services. Witness the proliferation of temp agencies and financial and IT consulting firms. I know that my company is going this route because it pays to do so. The difference here is that the field is largely untouched.
As for the low barriers to entry, you can point to any number of successful empires that have started out this way. It is not terribly expensive to build a fast food joint or an office supply store, but the McDonalds and the Office Depots did pretty well, I think. Granted, quite a number of their competitors fell by the wayside, hence my past warnings about risk in this stock. McDonald's and Office Depot sell consumables. My opinion is that information is now the equivalent of Big Mac. Once people get a reliable product at a low enough cost that is easy to obtain, demand will soar. I presently own only two BB stocks, both of them geared towards provision of information. The other is Financial Intranet (FNTN). Since investors here have shown an interest in this general area, I am sure they will forgive me for mentioning it. Read the SI thread if you are interested.
Of course there will be competition from conventional methods of dissemination, from the internet, from others providing similar, telephone-based services, and from some that I haven't thought of. The point is that TSIS now has a very strong base. As long as they can continue to provide a desirable service at a cost below that of their clients', they will grow rapidly.
> I asked about competitors. The Wall Street Journal now offers a similar service...as mentioned by two of my contacts, CPQ among them.
Very interesting. How can we find out more about this service?
> There may be some small money made here, but nothing major. This little company clearly doesn't have the cash stash to make a major splash. When I got my investor packet (April 9), there were no financials, not even the unaudited figures, but there was a "stock Purchase Form" and business reply envelope enclosed. I've been investing for over ten years, and I've never seen THAT before
You clearly got an old packet. If there is one thing in which the company really needs to clean up their act, it is in this regard. It has happened too many times.
> Novice Bob tells us he may not have a lot of time to do his DD during the day, but I do, and I've done a lot. IMO, many of you are so fascinated with this story that you may have forgotten to keep checking for fundamental value.
The upcoming quarterly will tell the story. Until then, all we can do is guess. I have heard more opinions regarding fundamentals on this thread than on those dedicated to any other BB stock that I can think of. Some are "fascinated with the story", most here are concerned with the entire picture.
> What amazes me is that with all the companies that are fully reporting, have audited numbers, solid profits, established products, growing margins, measurable market share, etc, etc,...well, it's clear that my style of investing doesn't fit well here. Obviously I'm not going to buy TSIS, but for those of you who have and will, I hope it works out well.
Best of luck in your investing elsewhere. We all have to make our own choices. Once again, on the risk-reward scale, TSIS comes out top of my list, but differing perceptions are what make stock markets.
Mike |
