TeleCommunication Systems, Inc. (TSYS) Write-up by Troy Marchand
[buffett]
Business Summary: TeleCommunication Systems is a technology innovator in secure, highly reliable wireless communications.
Business Segments: Commercial (50% of Revenues), Government (50% of Revenues)
Rationale for Owning: On a sum-of-the-parts valuation, TeleCommunication Systems seems cheap with a hidden asset worth the entire current market cap. The 9-1-1 business is very conservatively, right now, worth $200-300M, with significant opportunities to grow in the future. The 9-1-1 business makes up roughly one-third of the Company’s revenues.
Catalysts: Activists now have 2 seats on the board, and continue to push for corporate governance change/strategic review where a sale of the entire company is properly run process, possible firing of CEO. Growth in the 9-1-1 business continue to be...
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