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

To: Tensane 1 who wrote (2033)	5/12/1998 2:24:00 PM
From: Crossy	Read Replies (1) \| Respond to of 6931

Kevin, no - don't use historic valutaion. Use the thing that management says revenue grew to already. That has the +60% included. This means current (no growth) implied annual sales are $210 million per month x 12 = $2.5 million. Thi would mean Sales per share of approx. $0.10 as of NOW. This means PSR implied of 6 with NO growth. Let me stress I never seen a 70% profit margin. But I have seen price to sales of 10+ in biotechs with promising pipelines waiting to be released onto the market. By the end of the year the quarter filings will hint us what last quarters' sales will be. Use that to derive new annual sales. PSR of 3-5 would be okay for 15% growth. You know the interest rate effect on interest rates themselves - they addup very quick. So the dynamics in this sense are much more important. The rate of growth is another factor to support high Price to Sales multiples. Price to 6 as of NOW is not expensive for 70% profit margin. Would be important to know whether it*'s gross margin (just COG covered) or net margin or net margin before interest. best wishes CROSSY