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

To: Loren S. who wrote (4835)	12/16/1998 8:32:00 AM
From: CHRIS DiIORIO	Read Replies (1) \| Respond to of 6931

I agree that the strategy of buying the stock was a good idea but turning around and selling it was not. It certainly is 20/20 hindsight to say the Co. was wrong to sell at a loss and if they had made money none of us would complain. This is not fraud. And I think we need to emphasize the business opportunities this Co has on this thread.

To: Loren S. who wrote (4835)	12/16/1998 8:50:00 AM
From: John S. Baker	Read Replies (1) \| Respond to of 6931

I believe there is a difference. A stock buy back implies that once the stock is purchased, at whatever the price, it is retired, thus reducing the float and increasing the pro forma earnings per share. In this case, the stock apparently was actively traded in an effort to break the back of someone who was shorting the stock. So these are "trading losses" and not just a buyback cost. There are some other potentially troubling aspects. For instance, the company apparently had authorized a $2 million buyback during FY 1997. So they transferred more than $5 million into trading accounts held by "certain shareholders". It's not clear to me yet why they needed to transfer >$5 million in order to make a $2 million purchase. And it's not clear to me why that money should be transferred into accounts belonging to privately-held shareholders (rather than one in the company's name). The company also has not yet stated whose accounts were used. It remains uncertain whether this activity was authorized or unauthorized by TSIS's BoD, but it appears that the President (Don Cameron) was aware of it all along. JSb.