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

To: David W who wrote (3043)	7/8/1998 11:26:00 PM
From: Island Man	Read Replies (1) \| Respond to of 6931

Isn't that .33 per share?

To: David W who wrote (3043)	7/9/1998 1:33:00 AM
From: R. Gates	Respond to of 6931

David, That's the million dollar question! That's exactly why the next two quarters are so important. How big of a money maker can this company be? The current quarter will tell us some, and the Aug-Oct quarter will REALLY tell the story. I'll be looking closely at EARNINGS GROWTH between this quarter (May-July) and next. I expect to see earnings growth in the triple figures but no one really knows exactly how all these big (and small) contracts are going to translate into the bottom line. I was told (as I reported yesterday) that revenue for some of the larger contracts signed this spring are already exceeding expectations. But how these big contracts and their revenue translates into earnings is the key question that I think all long term or potential long term investors will be waiting for. One thing to keep in mind-- the more shareholders or users a company signing with TSIS has, the more revenue it will generate and also have better margins. Some people have speculated what a good P/E should be for TSIS. Well, IMHO 25 is a conservative figure to use for any rapidly growing company. Let's say TSIS get's to .04 in earnings by late this year. Then a reasonable valuation for TSIS is $1. In fact, that's exactly the real value I place on TSIS for later this year. Of course, many young growing companies have P/E's much higher, but right now, we have no idea what to expect from this company. That's one of the reasons it's only .52 right now...but the clock is ticking... Best Regards, R. Gates

To: David W who wrote (3043)	7/9/1998 8:45:00 AM
From: jmt	Read Replies (1) \| Respond to of 6931

David: I do not believe we can make the leap from revenue to earnings yet. July 30 financials issued around end of august may help. But we cannot determine fixed vs variable costs now, and as the infrastructure builds, fixed costs will continue to increase up to a point. I hope (but do not expect) the price to move up sharply before they report strong earnings growth. Mr. Gates, Larry also mentioned to me that costs were going up, but I thought that included the sales force. Commision only is good news (I think). Wonder how the agreement is written. Wonder if I could sell the product for shares? jmt