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Technology Stocks : TSI TelSys Corporation - Satellite communications -- Ignore unavailable to you. Want to Upgrade?

To: Robert who wrote (155)	6/3/1999 10:34:00 AM
From: Ron Struthers	Read Replies (1) \| Respond to of 241

Robert in essence the market is always right, as investors we are trying to predict it's future move and be on the right side. Buy low, sell high is the plan I thought 1.30 was low for TSI, obvious the market thinks $0.50/0.60. I think the market moved too far and there is all kinds of potential from these prices. So 0.50 is real low. I will be back later and post my review from the tele conference last week Ron

To: Robert who wrote (155)	6/3/1999 8:05:00 PM
From: Ron Struthers	Respond to of 241

I have this update from the TSI teleconference today. (May 26th Future Tech Update) TSI went into detail on the recent financials and how the changes to U.S. GAP affected them. Basically it was take and give some here and there. The more important aspects of the conference were the current outlook on sales and orders etc. It boils down to a few unforeseen events affecting sales growth. TSI still expects 1999 sales and revenue to grow over 1998, but it will not be the triple digit growth that we were looking forward to. In 1998 Japan accounted for about 40% of TSI revenue and as in a previous news release, TSI is projecting a major slow down from Japan caused by the continuing economic problem there. Sales are expected to grow from NASA related projects but not enough to offset the Japan decline. TSI spent considerable resources in the past 2 years in China and this would have resulted in sales this year, however you have probably read about the embassy bombing and the Chinese spy scandal. To say the least, U.S. and China relations are not good. All export licenses to China are being reviewed, including TSIs' as a result TSI has decided to project zero sales here. U.S. budget changes have also affected timing of orders and the defense dept. orders have come slower than expected, likely the result of budget alterations because of the Kosovo war. The good news is NASA related sales growth and sales from Europe, Germany and the European space agency in the 2nd half of 1999 will more than offset these declines and is why TSI is projecting modest growth. Another impediment with sales growth has been TSI's difficulty in closing contracts, especially U.S. defense related because they are a foreign company (legally Canadian). The move to the U.S. will be completed in the 2nd half of 1999 and this will also be a plus for future sales growth. TSI expects the conversion of the $5 million in debt to non convertible preferred shares to be completed in July, this will strengthen the balance sheet. LavaLogic will make its official debut at a major trade type show in June. Beta testing of their Java software tools should soon be complete and TSI expects to spin off part of LavaLogic in the 2nd half of 1999. This is just speculation on my part, but I expect this could amount to considerable dollars and a very good agreement with a major Tech company. The engineers at TSI are world class and I expect the product out of LavaLogic is to. I did query if TSI intends on any Investor relations or Media type firm. Jay Pisula responded that he has just been there less than a year and his priority has been to improve the company structure, improve the balance sheet and move to profitability. This would be something they may look at as the year unfolds. I Believe Mr Pisula has been doing a good job in this regard, preparing TSI for it's next phase, a growth company from a R&D company. TSI and AMCX will have their day, for now they are both cheap. Will they get cheaper? perhaps, but now is the time to accumulate before the market catches wind of these two. Ron