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: John S. Baker who wrote (2588)	6/8/1998 11:05:00 PM
From: John S. Baker	Respond to of 6931

Several of us have discussed, both here and in PM's, how difficult it is to assign a value to TSIS, because of the lack of a suitable model. Biotech companies are in the same boat ... you burn money for years, hoping to produce one (or maybe two) products which have some income potential. Here, for the adventursesome only, is one method of valuing a biotech company. Has some useful parallels to a company like TSIS, which has spent considerable time developing a product/capability which only now is beginning to prove useful. Remember ... for the adventuresome only! westergaard.com:8080/Med/Valuation/index.htm

To: John S. Baker who wrote (2588)	6/9/1998 12:57:00 PM
From: Crossy	Read Replies (2) \| Respond to of 6931

John, with a "static" approach as of now, not factoring ANY growth into the equation, TSIS appears correctly valued at $0.60. Margin is high, more than 30% and sales are at $2.5 million annually, using an implied sales estimation method where You extrapolate current month's revenues of $210.000 to the timespan of 12 months. That would result in $0.09 annual sales per share using 29 million shares for the calculation. Now that means a PSR of 6.3, which is very ok in high-margin situations like this. However if growth holds on the way it does and the company won't issue more stock then we might arrive at PSR of less than 3 next year if the stock price is still at 0.57. This means from a dynamic perspective the stock is undervalued. Just to sum up, because You mentioned ALYA, I think that ALYA is more undervalued than TSIS but that's just the result of an extrapolated PSR analysis.. best regards CROSSY