Michael, he he on TSCN being off your list for TA, reasons.
Are the pro's using their internet service, their charting software
that runs on your own PC or both?
here's an article that was in the Houston post in april.
I'm looking to buy a larger position when they return to the 200 dma around 9 during the summer sell-off.
beig covered by only 2 wall street firms means that the company has much room increase profile and interest in the future. imo
________________________________
April 26, 1999, 08:18 p.m.
Telescan growth hot as online trading
Hometown provider hits it big
By TRICIA SERJU-HARRIS
Copyright 1999 Houston Chronicle
The next time you make a trade online, research stocks or check out general financial information
using the Internet, chances are good that Houston-based Telescan had something to do with it.
Its client list includes some of the most recognized names in financial circles. American Express,
Citibank, PointCast, Standard & Poor's Corp. and Time Inc. New Media are just a few of the more
than 17 financial and nonfinancial partnerships the company has made.
"We're one of the few Internet companies that are profitable," said David Brown, Telescan's
chairman, CEO and founder. "We should do about $20 million to $30 million this year. That's 65
percent better than last year."
Among its nonfinancial clients are the Hollywood Reporter, Billboard and Adweek magazines.
But nowhere on those sites will you see Telescan's name. The company has made its reputation on
working behind the scenes, designing Web sites and building Web-based programs to provide
investors with financial information.
Next month, for example, visitors to Playboy.com will use Telescan's technology and data to research
investments, read commentary, analyze portfolios and link to other corporate sites.
Telescan can also operate a client's site with its 150 employees from its data center on Corporate
Drive in Southwest Houston.
"When the large, successful companies want someone to partner with them on their Web presence,
we've been picked," Brown said.
For example, NBC tapped Telescan to create customized investment analysis, provide financial data
and host services for its CNBC Web site.
Telescan's in good company. NBC partnered with Microsoft Corp. and CNet to create the MSNBC
cable channel and the Snap.com site, respectively.
"In the past, we've looked at different partners and always tried to pick the best," said Laurence A.
Tosi, director of business development at NBC. "The last piece of our strategy was to find the best
partner with the best financial content and data."
Tim Stobaugh, an analyst at Stonegate Securities in Dallas, said Telescan is meeting the demand from
a growing trend of companies -- financial and nonfinancial -- jumping into sites that provide online
trading services.
"Telescan is consistently being selected by those companies to be their online provider," he said. "The
fact that these large-name corporations want Telescan to be their partner speaks volumes about its
services and abilities."
Since 1984, five years before going public, Telescan has been building up a large database of financial
information and has developed analytical software that gives the company an edge against many of its
competitors.
As Internet trading continues to experience unbelievable growth, Stobaugh sees Telescan's prospects
as "extremely bright."
So it's doubtful that Telescan will remain in the shadows for long. It's making acquisitions and alliances
at an extremely fast pace.
On Monday, Telescan agreed to buy California-based InvesTools for about $49.2 million in stock.
InvesTools, a privately held company, provides investment newsletters and advice to subscribers
through its Web site, e-mail and other Internet services. It's grown more than 25 percent a quarter on
average for the last three years, Brown said.
The acquisition increases Telescan's offerings to financial subscribers and will boost visits to its own
financial information and investing site, Wallstreetcity.com.
The announcement is one of several the company has made in the past year.
Earlier this month, Telescan increased its minority interest inMicroCap Financial Services. The Santa
Monica, Calif.-based company plans to take Telescan's e-trading technology global through its
European Web sites.
In February, Telescan announced its deal with CNBC.com.
Other plans include growing Wallstreetcity.com, which doubled its revenue in the past two years;
forming more partnerships, which can bring another $25 million to $50 million; and getting more
involved in the transaction side of Internet trading.
"You'll be able to buy or sell without logging off our site and go to a broker site," Brown said. "People
hate having to leave a site to do trades elsewhere."
Telescan's stock price has also done well in recent months. It hit a 52-week high of 26 3/8 on April
14, up from a dismal 2 5/8 on Oct. 19. The stock closed up to 20 on Monday.
"That's a big move in a couple of months," Stobaugh said. "We see Telescan's direct competitor
isCBSMarketwatch.com at 10 to 15 percent the valuation. That's due to the lack of exposure."
Telescan will report its first-quarter results before the markets open today.
Currently, only two brokerages that follow the company are Stonegate and Security Capital Trading.
Being based in Houston instead of in cities that are known for the Internet, like Silicon Valley or
Seattle, has been a slight disadvantage for Telescan.
"We are not in the hotbed of the Internet," Brown said. "But the advantages of being Houston-based
is the competition for programmers is not as difficult as in Silicon Valley, nor is the cost of living as
high as living in California." |
