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Microcap & Penny Stocks : TSIG.com TIGI (formerly TSIG)
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To: Tom who wrote (28422)5/18/1999 8:40:00 AM
From: Suzanne Newsome   of 44908
 
Tom, you ask good questions, and you ask them so cleverly! Of course, I want to be counted among the forward-thinking.

In the current situation the company is in, no acquisitions!

If TSIG becomes profitable in the fourth quarter, 2 things will happen: the company will have cash on hand and the stock price will go up. Let's look at 2 scenarios. Say the company wants to make a small acquisition this summer for $15 million and the stock price is $.40. That would require 37.5 million shares to be issued.

Now let's say next summer, the company wants to make a similar acquisition for $15 million and the stock price is $4.00 (not hyping, just have to pick a number). Having been profitable for 3 quarters, the company has cash on hand and is able to put $5 million cash down. A bank, seeing the profitable growth trend the company is enjoying, lends the company $5 million at 8% interest. The company issues 1.25 million shares to fund the remaining $5 million.

So waiting one year results in a saving of 36 million shares. I cannot imaging what kind of deal would be worth the issuance of 36 million shares that could be avoided by waiting 1 year. Until the matter of Gordon selling shares is settled once and for all, I am unwilling to provide him with an additional 50 million shares to do whatever with.

Regards, Suzanne

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