What was the original business?
Can you shed any light for us on Mr. Bildner's
business plan? Isn't there more to it than "Acquire-then
be Acquired"? What about the Migration Solution (see
I will gladly exchange my stock
knowledge for your insight into Tier, your information is
far more valuable to this board!
IMO means "In
My Opinion". Sometimes shown as IMHO or "In My
Humble Opinion". Having purchased TIER, I left out the
humble part -- this is a given!
The Book Value I
was referring to can be derived by dividing the
Shareholder Equity ($70 million) by the Outstanding Shares
(10.x Million) A key ratio for all the current
cheerleaders is the Price-to-Book ratio, which is at 1.01 or
virtually equivalent. This is available in the Profile
section in Yahoo!
Stocks rarely have a
price-to-book ratio below 1.00, so TIER appears to be a VERY
safe bet at this price assuming their Shareholder
Equity continues to grow.
If you were to take a
Value Investment approach, TIER could be your poster
child. As a Growth Investor, I more willing to pay a
premium over book for a strong performer. I usually only
pick stocks with consistently strong price
performance. When I stray, I usually pay (as with
If you wish to buy at these levels, you should not
lose money as long as we stay clear of a Bear Market.
However, I don't think you'll make as much as you would
with a strong stock.
In any case, I agree with
the cheerleaders in one respect. There is no reason
to sell -- NOW!
I too also USED to work for TIER back in the
"good 'ol days". TIER used to be focused on who and
what got them to where they are (were). Once the
partners decided they wanted to take the company public it
was down hill from there. The company immediately
began to focus on $$$ instead of quality consultants
and top-notch work. They began treating their hourly
staff like dirt (even the original staff) and went with
Mr. Bildner's new business plan. The direction of the
company is, and has been since day #1, to go public and
set itself up to be bought. Once they lost sight of
their original business, it was down hill from
Many of my collegues have left the company without any
of the promised stock options. The environment was
just too frustrating for most of us to watch what used
to be a great company fall from grace and become so
focused on the $$$ it hurt them. Kind of ironic, don't
you think ?
IMO = in my opinion
IMHO = in my humble
Book Value is the total assets minus all liabilities
(if the company was liquidated, conceivably how much
cash would each shareholder receive?) See link below
for a somewhat current book value on
I do thank you for your
lenghty replys to me. They were very helpful. However, I
did not understand something you said. You said,
"there is very little downside risk to buy now IMO."
Just what do you mean by "IMO".
What does it mean to talk about "book value" of a
stock. The shares I own have printed on them "$0.05"
cash value. Surely, that is not what "book value"
I too, hope Mr. Bildner can turn Tier around. The
people who made Tier a great place to work are not all
gone. Diluted maybe but not gone.
I wonder if
the cost of operations when Tier set up development
centers in Phoenix and Walnut Creek caused them to
experience some overhead costs that they had not
anticipated. If so I would have like to hear them admit it in
Thanks again in advance for
Thanks for the insight on Mr.
Barton. He sounds like an interesting individual. I think
the shareholders would be better off if he were still
in charge -- he has my vote! It sure sounds like the
employees would be better off as well.
your question I will relay a short story of my own. I
happened to be in your hometown airport last week
listening to the stock market news. A man was there with
his teenage son. When news hit that his major holding
had been trashed that day, his son asked if he owned
that stock (knowing full well that he had just bought
it). When his dad playfully acknowledged the obvious,
his son replyed "Good news dad, your stock has hit
rock bottom and is on the way back up!" His dad
replyed "timing is everything".
Perhaps the only
advice I am qualified to give is NOT to buy low and sell
high. Unfortunately, this is a case of "do as I say
versus do as I do". Cheap stocks are cheap for a reason,
as we found out. Since the IPO, Tier has become an
acquisitive company. I think the US acquisitions have been
very good. I am uncertain about its international
purchases. SOMETHING caused the earnings shortfall, but the
question is -- was this a short term glitch, investment
for the future, or poor management?
not buy TIER until these questions are answered.
However, there is very little downside risk to buy now
IMO. I just think you should invest in stocks that
have a better chance to succeed.
that Mr. Bildner can prove me wrong.