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

To: gary g who wrote (6196)	6/3/1999 2:12:00 PM
From: John S. Baker	Read Replies (1) \| Respond to of 6931

"do you believe this company should be compared with the business services sector which consist of 66 companies?" For lack of any better grouping, I suppose so ... although there are many ways of perceiving a company. For instance, is "book value" more important than "growth rate"? How, for instance, should one have compared and contrasted Barnes & Noble against Amazon.com in the days before B&N had a web site? The internet-is-everything apologists would say that the bricks and mortar part of book value actually should be considered a drag on a company's value, rather than a significant contribution to the company's value. It's not my style to delve deeply into the relative strengths of various stocks in a group, so my opinion is probably just a guess. And I suspect that someone will come along and say something which can neither be proven nor challenged like "penny stocks do not react with their grouping" or whatever. But then, what do I know about this? JSb.

To: gary g who wrote (6196)	6/3/1999 4:35:00 PM
From: jmt	Read Replies (1) \| Respond to of 6931

do you believe this company should be compared with the business services sector which consist of 66 companies? No I do not. Industry comparisons are only valuable within a narrow set of parameters, and are developed to anticipate the effect of some microeconomic event that may equally effect the entire group. Most are mature companies, with similar capital structures, financial ratio's, and all other things that make them be sensitive to the same systematic risk factors. I do not believe the TSIS has a homogenious product that would be affected by the same factors that impact these other companies. There are more limiting factors that impact the stock price other than performance, such as liquidity and perceived risk issues associated with the OTC markets. TSIS offers a unique and diversified set of services the do not fit well into a mold. Their cash flows are subject to very different influences other than those affecting other telecommunications companies. Difficult question, long answer, but JMHO. jmt