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

To: John S. Baker who wrote (2020)	5/12/1998 8:55:00 AM
From: MeDroogies	Read Replies (1) \| Respond to of 6931

It all depends on your goals. When determining your investment strategies, you should pick a valuation method, and stick to it consistently. If AAPL were valued in the same method as MSFT, it would be priced at $92...just goes to show you how inconsistent investors typically are.

To: John S. Baker who wrote (2020)	5/12/1998 12:38:00 PM
From: Crossy	Read Replies (2) \| Respond to of 6931

John, no problem. First why Price Sales instead of Price earnings ? Answer: if You are factoring net or gross margin in a given industry in it has more value as a prognostic indicator. Only revenues need to be estimated, not cost. This uses a "standardization" approach. OK, for instance in retailing (apparel), net margin (can be even BEFORE INTEREST ! then it's EBTI margin) of 5% warrants a Price to Sales between 1 and 2. Everything below 1 is VERY CHEAP. Net margin of 10% warrants Price to sales between 2 and 4. Net margin of 15% warrants P to S between 3 and 5. Generally the more proftibale the business the higher Price to Sales will be.. For TSIS, I would say Price to Sales should be 3 to 5 at least. The penny status warrants a discount, so does the non-reporting status. OTOH, good net profit margin, or even a future expected net profit margin of a huge current gross margin warrants an increase in the Price to Sales ratio. You can dynamize this calculation further if You factor revenue growth in. Provided You can use EXISTING infrastructure (as in TSIS case seems to be so) to leverage and support additional sales, the margin should AT LEAST hold the current status quo. Then top line growth will immediately result in bottom line growth..If You think TSIS will double revenues this year and NOT issue additional shares then this should mean: the stock price should also double... best wishes CROSSY