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

To: Loren S. who wrote (5718)	4/4/1999 7:39:00 PM
From: John S. Baker	Respond to of 6931

"Being someone who occasionally digs fairly deeply into stocks I need to be a little bit cautious when I come across some substantial info that could get me into trouble." First of all I should have added the usual caveat to my earlier message: IANAL (I Am Not A Lawyer). Secondly, my understanding is that the source of your information, rather than the depth (or shockingness), is the important element. If you dig it out yourself, you are entitled to use it to your benefit. Now in fairness, the really big insider trading things often are the results of a conspiracy between an insider and someone else. I do not know whether mere carelessness on the part of the insider can cause problems; I suspect it depends upon the situation and whether the SEC wishes to get him anyway <grin>. "Regarding TSIS, one problem we have here is that a lot of the large companies TSIS contracts with won't allow TSIS to release news about the contracts publicly. So how is an investor to know that TSIS has landed a large contract other than for the company to tell investors who call about it?"</I This is frustrating, but taken to the ridiculous extreme, does anyone really think that Lockheed discloses every contract that they get from the US Government to develop some new super-secret aircraft? One difference is that Lockheed has an established record of revenue flow, upon which investors and analysts can begin to base opinions. In TSIS's part, there is no harm in saying, simply, "We "We have received a contract to provide xxx services to a second-tier telephone company. That company, our client, has requested that we not disclose their identity. As with all our similar contracts, revenues will depend upon usage, but we anticipate that this contract will become profitable within the next quarter, with margins matching our other similar contracts, and could contribute as much as xx cents in eps during the present FY." That informs everyone, yet preserves the sanctity of the contract. The only people who will not be pleased are those who are not happy unless they are dithering around with "the latest" information from IR. Some people, after all, if you told them they wouldn't be the first to be able to bubble forth about a secret, wouldn't have anything original to talk about. For that matter, I haven't seen a lot of real, serious analysis on this thread in a long time. Anyone care to start? jmt? breeze1? JSb.