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

To: ER Doc who wrote (4970)	1/4/1999 11:21:00 AM
From: jmt	Read Replies (1) \| Respond to of 6931

ER: Thanks for your input. I hope to have a discussion with JJ this week to better define the potential revenue. I realize you understand much of the larger revenue generators are estimates at best. And I am not clear where any of the MCI business stands at this point, but I do not believe the 4X AT&T estimate is still valid in the near term. In the past I believe the estimates coming from the company were at the high end of probabilities, but recently there has been more of a conservative tone. Recall during the last conference call Don was mentioning the requirements to become listed on a major exchange. Among the if's and or's, he mentioned a requirement of annual net income in excess of $750,000, and suggested it would take the company a year to get there. If I understood him correctly, this would imply that by Don's own calculation, he expects to earn about $0.025 annualized this time next year. At 17x earnings this would target the stock at 42 cents. It would be quite interesting to understand Don's estimate, and use it as a baseline in adjusting by product line and customer any gains or losses beyond his model, as well as a measurement on how management is performing relative to plan. An here is where we get into the benefits of having management ultimately compensated with stock options ( many out of the money rather than few in the money). I do believe Don and Hutch are doing an outstanding job growing the business, share price not withstanding. The are aggressively developing and pursuing new opportunities, and seem to have the technical assets in place to execute. Frontier is in the bag, now just a couple more big names and we will be well on our way. jmt