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10/11/15

21:04

Post #: 16365392
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Originally posted by firsttothetable ↑

Hi all,

It's great to see the interest building now that the share price is starting to move, but there's definitely no need to be rude or get offensive to general questions and chit chat around subjects of profitability and cash flows.
There hasn't been much talk from the company around the margins, but we know they are operating at a gross profit for the first time since TSi was reversed into TSN.
On $20 million of revenue I would expect the profit margin to be somewhere between 10-15% (refer to Tony posts), and don't forget now that they are ramping up their fleet this figure becomes a lot more scalable, as Tony has eluded to previously we probably sitting at 2700 ATM's now, with 400 mobile kiosks, which are higher margins.
This is a growing, recurring revenue business with a rather large macro theme "Indian Finacial & Banking Growth".
Please refer to my previous post on WHY TSN IS UNDERVALUED.
One must not forget that HITACHI purchased TSi's competitor (Prizm) for > $175 million USD in 2013. There are news articles that say the figure was between $225-250 million, but we won't see anything actually verified. At the time of purchase I believe Prizm had 8000 active ATM's.
As we have discussed previously, we are hoping TSi can buy a large fleet of ATM's in one hit and optimise unprofitable fleets to profitable fleets through integration of TSi software systems and who knows how many they might be able to buy in one hit, on the cheap - 3000? 4000? 5000? More?
To be honest, I have not felt more comfortable with this stock than now, I can feel something big is unfolding that is way out of our control.
The traders will come and go in this stock but the real money is made sitting tight.
GLTALTH.

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Thanks FTTT,

Its always interesting to see the different reactions to some questions on numbers, and your post confirms margins are hard to calculate due to the structure.

Can you clarify, The $20m revenues mentioned, what period is that? and also is TSNs share the 25% of that?

TSN Price at posting: 1.1¢ Sentiment: None Disclosure: Not Held
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