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Technology Stocks : TouchStone S/W (TSSW) -- Ignore unavailable to you. Want to Upgrade?


To: PJr who wrote (2430)1/7/1999 8:47:00 PM
From: robbie_nw  Read Replies (2) | Respond to of 3627
 
Interesting stats on todays trading action:

Total # of trades: 54
Avg volume per trade: 1,711 shares
Total # of BUYS (ask): 48
Total # of SELLS (bid): 6

In last hour there were 11 trades (buys) @ 15/16 equaling 18,200 shares bought AT THE HIGH.

ONE MAJOR PLUS ABOUT NEW CEO: HE WILL BE THE LARGEST SINGLE SHAREHOLDER....now we've finally got someone running the company that has the majority of his net worth tied to shareholders # 1 concern....STOCK PRICE.

As a result of this deal, there is IMMEDIATE NEW REVENUE and profits from 3 sources:
1) Unicor's current revenue/profit (yes, they are profitable)
2) Unicor's NEW revenue from new access to TSSW's customers
3) TSSW's NEW revenue from new access to UNICOR's customers

When it comes to mergers/acquisitions...1+1 usually equals 3 or 4...thus the advantage of consolidation. Any overlapping/similar areas present opportunities to cut costs and gain economies of scale....and any unique/specialized areas present opportunites to leverage each others existing customers..etc.

As far as turnaround nearterm...dunno....have to wait till we can talk to NARATH....but with a company the size of TSSW...these new revs/profits could have a drastic near term impact on the balance sheet.

Small gains on small revenue = large percentage improvement.

Just look at the stock today... small gain (7/32)=large percentage gain(30+%).

(ok, maybe that last example just verifies the pitiful stock price...<gg>)