Risks & Disclaimer
The internet has expanded business financing, creation and opportunities. One upon a time, companies weren't offered to the public until these companies were profittable. Now companies are IPO'd with considerable losses and no foreseable future of profits. Many of these companies have huge market caps from high valuations. Traditional models of valuation no longer seem applicable since companies are being "valued on vision" rather than on earnings.
The competiton for financing is great and many venture capitalists want too much control, so many businesses that are re-definining themselves to adjust to the digital economy and those that are starting up in this economic reality are looking for additional ways to generate seed capital. Many businesses' continue to hone and refine their business plans after going public- utilizing the money they've received from their public offerings or private placements converted into public shares
Tsig.com is one such company. Tsig.com redefined itself, sought capital, became unfocused, had to re-focus, squandered capital, and utilized a financial instrument that led to massive dilution.
The consequences of these mistakes, which will be discussed in more detail in subsequent posts, are for all to see in the '99 3rd Q SEC filings released 11/15/99.
Tsig's has accumulated considerable debt and hasn't yet enacted its business plan sufficiently to offset additional debt.
This harsh reality is necessary for everyone to consider before purchasing one share of tsig.com stock. Tsig's reality though isn't as severe as many other internet companies. Actually it is better than many whose problems aren't as manifest due to these others companies abilities to continue to attract venture capital.
Then why invest in tsig? The answer to this question lies in subsequent messages on this thread.
So to cut to the chase, the bottomline is that tsig.com is a VERY high risk investment. The company may or may not succeed. An investment may make or lose a lot of money. This isn't different than any other company, except that with a company like tsig.com, an investment at this time is an investment on a future and not an investment on a record. Peter Lynch would never recommend this stock. He would call it speculation. However, the cliche the greater the risk, the higher the reward is especially applicable in the case of tsig.com. Anyone and everyone has to access for themselves the level of risk they can tolerate in regards to their own particular financial circumstances. An investment is tsig.com shouldn't be one, that one cannot afford to lose. |
