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

To: BGL who wrote (2611)	4/12/1999 9:19:00 PM
From: David Alan Cook	Respond to of 3627

BGL, My Thoughts: 1) Fast Move has not been a big seller for TSSW in the past. The company needs to bundle this product with another product. CEO stated that he was reviewing options to do just that in the last conference call. 2) Revenue - The 4 million in revenue that I am referring to is revenue ONLY from Unicore. This would almost double TSSW's total revenue this year. * In 95, TSSW reported earnings of 20 cents in the first 9 months of the year( .07 in the first qtr on revenue of 2.86 Million, .06 in the 2nd qtr on revenue of 3.32 Million and .07 in the 3rd qtr on revenue of 3.5 million ) * I believe that the Checkit Product line offers the highest profit margins and then Net Optimizer for TSSW products. 3) E.support - company has already made an investments in e.support . Expect an internet move in the third and fourth qtrs of the year. CEO stated that his first priority was to enhance shareholder value by turning the company to profitability. 4) Reference CEO ownership. CEO bought 150,000 shares in at $1.20. See Executive agreement. . . CEO has the option to purchase 25% of the total shares with or without approval . . . I am sure that he wanted shares other than cash because he knows that these shares are undervalued. Ref - Escrow period - Average daily trading volume for TSSW is less than 50,000 shares a day. Very unlikely that anyone could sell quickly 2 million shares. The MORE LIKELY SCENARIO in my opinion is that the CEO takes steps to enhance the share price and then seeks to be acquired. . . Phoenix . . Award or some other company. I bought shares in TSSW because: 1) The stock sells at a steep discount to the industry average price ratios . . price to book . . .price to sales. 2) The company sells at less than 1.5 times cash 3) New products, partnerships, agreements and mgt offer the potential for a turnaround. Balance sheet is strong . . company has time to turn itself around. Incentives to mgt are there . . .common interest. DC Couple questions that I am looking for answers: 1) What is the total revenue for Diamond Multimedia and what percentage of that revenue can be attributed to modem sales? 2) What amount of revenue is generated from Compaq's licensing agreement / Card Ware ( Phoenix technology recent purchase )? 3) What is the total value that would be saved in executive salaries alone from having only one mgt team versus two. . one European operation versus two. . . one building versus two . . one overhead versus two . . etc? 4) What additional revenue can one expect from having the number one e-commerce retailer ( Digital River )market their product with their enhanced marketing tech? 5) What additional revenue could be generated from marketing TSSW's products through the OEM Channels? DC