Is tssi going higher

**TSS Inc. (TSSI) is likely to face challenges in continuing its upward trend**, here's why: 1. **High Debt Levels**: TSSI's balance sheet is not strong, as evidenced by the high cost of debt incurred through factoring, which has a significant effective interest rate. This indicates that a substantial portion of the company's profits are being used to service debt, reducing the funds available for growth and investment. 2. **High Customer Concentration Risk**: The company's revenues are heavily dependent on a single OEM customer, which accounts for 97% of H1 2024 revenues. This high concentration poses a near- to medium-term risk, as a significant shift in demand from this customer could have a substantial impact on TSSI's financial performance. 3. **Interest Expense Impact**: A significant portion of the Systems Integration segment's operating income is consumed by interest expenses related to factoring. This reduces the segment's profitability and can negatively affect the company's overall financial health. 4. **Market Conditions**: The broader market conditions, including interest rates and economic factors, can influence TSSI's stock price. High volatility in the stock price suggests that market sentiment and external factors may be playing a role. 5. **Short-Term Rates and Economic Factors**: The high short-term rates and economic factors could continue to pose challenges for TSSI, as they may affect the company's cost of debt and overall financial performance. In conclusion, while TSSI has shown robust growth in revenues and profitability, the aforementioned factors suggest that the stock may face headwinds in continuing its upward trend. Investors should closely monitor the company's financial performance, market conditions, and potential risks related to customer concentration and debt levels.