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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 (4832)	12/15/1998 9:03:00 PM
From: crimson	Read Replies (1) \| Respond to of 6931

John - I agree 100% - If we could go higher than 100%, I would agree that much more...Management really blew it! Big time...Success will still come, but now it is WAY further out... This, is just my opinion....Lets just say I am a mad stock-holder!

To: John S. Baker who wrote (4832)	12/15/1998 9:12:00 PM
From: ER Doc	Read Replies (1) \| Respond to of 6931

Questions for John and others with more experience than I: 1. Obviously an error in judgment occurred. What do you think this was due to? Misplaced optimism? Lack of experience? 2. Are we being too hard on them with our 20/20 hindsight? Would not this attempt to support the stock price have been applauded by shareholders at the time? Didn't we all think the price of the stock would go up too? Does this not demonstrate that the company had confidence in itself? 3. While the Nasdaq listing might be delayed, will this adversely affect the fundamental growth of the company? (Projected revenues, etc.) 4. What SEC rules might have been violated? 5. Was this discussed at the last annual meeting? Is this the kind of thing that a fully reporting company could not have kept quiet? 6. I was told by IR that this incident made the book value of our stock diminish by 4%. How is that calculated, and what does it mean? 7. Do you consider this as big a negative as, say, the AT&T deal was a positive? MCI? How about achieving fully reporting status? I have been reading the financial report today, reading SI posts, and have been in contact with IR, trying to get a feel for the significance of this.

To: John S. Baker who wrote (4832)	12/16/1998 7:13:00 AM
From: Breeze1	Read Replies (3) \| Respond to of 6931

To: John, and the rest of investors. As bad as this seems, what if they never reported the stock episode? What if auditor was in on a scam? Is the glass half full because Don reported the truth?

To: John S. Baker who wrote (4832)	12/16/1998 9:01:00 AM
From: jmt	Read Replies (1) \| Respond to of 6931

John: I have finally had a chance to review the financials, and would like to share a few thoughts. First, on the purely financial side, there were no surprises. Operations are improving as revenue trends upward. But as is clear, these operating results are dwarfed by the disclosures in the notes. Many issues have been introduced with the completion and dissemination of the audit. They involve the past, present and future, and shift the focus from technical advantage and sales opportunities to management acumen. To understand the future is of course the critical question. And that can possibly be defined as how much we as shareholders and TSIS Directors have learned from our mistakes. I do not question Don's integrity or dedication to making this business successful, nor Hutch's ability to open doors for the expanding product lines. But some of the past will continue to overshadow the future. IMO It has become crystal clear why the stock is trading at its current levels. And it has nothing to do with the core business. Many have stated the stock should be trading at much higher level, advanced by the company's suggestion it was MM's that were keeping the price down. We now know this is not the case. In fact much of what we have heard in the past we must question in the future. I was looking for the defining moment to be the booking of MCI, which was highly publicized as a lock, "4 times AT&T". This would have added significantly to earning. I am still waiting. All the other business opportunities must be quantified as to contribution if and when to the bottom line. Again looking forward, the biggest threat to the company is encompassed in Note 8, a,b and c. We can talk about earning a couple of cents in 1999, PE's of 4 to 7, but until the true extent of the contingent liabilities become clear, the stock will continue to trade at a below market multiple. Many hard decisions have been made by the company recently, which are in both management and shareholder interests. At the end of the day we all have the same objectives. The errors in judgement are in the past, and the penalties are not yet clear. But it is finally out in the open to enable shareholders to make their own reasoned decisions. jmt