Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Whiskey who wrote (2489)	6/3/1998 1:06:00 AM
From: Don Ohland	Respond to of 6931

Whiskey, I don't want you to feel unappreciated so KUDOS!!!!!!! Both you and Barbara have done good work with you're caution to investors. It's refreshing to see practical discussion of a companies opportunity vs. all the hype that's common place on these threads. After some DD of my own today I started to building a position in this company. I purchased 5000 shares and plan to add should all the pieces come together. I don't mind averaging up in a good company with good potential. I will be holding for the long term. Although I agree with both you and Barbara, I don't think this company deserves to trade for .53 cents if they can accomplish two consecutive quarters of profitability,regardless of the amount. Especially if they continue to announce new contracts. Thanks for the good work I think we've found a solid long term company Don

To: Whiskey who wrote (2489)	6/3/1998 1:51:00 AM
From: Tobasco	Read Replies (1) \| Respond to of 6931

True, gross revenues are reduced for operating costs. But, based on the press releases TSIS expects a gross profit of around 70% and it was said, as I recall, that revenues could double with only a 10% increase in costs. Even if that 10% is on gross and not on the operating expenses amount that still leaves approx 60% to the bottom line! Assume the present operating expense level, about 325k per quarter, will be covered by increased usage from previous contracts and startup revenues from new ones coming on line. Previous revenues were stated to be 130k per month and that grew by 50% which would be 195k, x 12 = 2.34m x 60% = 1.4m net for the year. Not bad for a company just expected to turn profitable this quarter. Add GTE with 15m affinity calling cards per year at say 50% usage for 2 minutes each at say 25 cents a minute and that is another 3.75m per year gross revenue (the "doubling of revenue" in the GTE press release). Apply now 50% profit (down from 60% for still additional costs) and you get 1.875m net for the year. The combined net then is 3.275m annually by 25m shares is 13 cents at a 20 PE makes TSIS a $2.50 stock. Six more months or another two quarterly reports should be all we need to prove this. So by year end 1998 we should all have a Merry Christmas!

To: Whiskey who wrote (2489)	6/3/1998 2:28:00 AM
From: BarbaraT	Respond to of 6931

Kudos to you as well. However, the cost of operations in no way goes up at the same rate as the revenues increase. Don Cameron has said ... and this has been posted by John Baker and others ... that revenues could double and even triple, while expenses could increase for as little as 10%. So, even if expenses increased 30%, we are talking about revenues doubling (100%) at the minimum. That was just with GTE. There are other contracts coming, and that did not include AMAT and all the other recently signed deals since they were not all up and running at the time of the GTE announcement. In 12 months time, revenues should be more than doubled and expenses should not increase proportionately, but fractionally. That is what is so exciting about this company. The growth here can be explosive. You really should go back over these threads when you have a chance. Gavlick and Baker and others have really done DD on this and can be more exact. But I know that they have more than enough T1 lines and that they would have to sign a lot more contracts to add the kind of personnel that would increase the expenses as you mentioned. The major expense is already in the company. Very little has to be added. However, if you call Scott Cameron (800-931-5050) he can give you a better picture of expense/revenue projections. I can only repeat what was said by the Don Cameron, and I believe that the same still holds true.