**Bernie Deutsch report Part 1** I spoke with Bernie Deutsch on the phone earlier this evening. Bernie is one of the PP investors. He has invested $1,300,000. He, his family, and his friends own approximately 15,000,000 shares. He converted 2,000,000 shares at $.245. I mention these facts because it is important to state upfront where Bernie is coming from. He is a large shareholder; he has a large sum of money at risk; and he describes himself as "working 28 hours a day for TSIG." He has been around the company for a couple of years and strongly believes in the business plan.
Bernie describes the other PP holders as "professional PP investors." He said some of these people have shorted the stock. He said one person has been converting and selling since the stock was $.40. There is more conversion to be done. [Clarification: Bernie like many others here on the thread seemed to use "conversion" to mean "convert and sell." It is my understanding that "conversion" is one step, i.e. converting debt into shares. If these shares are held and not sold, there would be no direct downward pressure on the share price. Indirect downward pressure may come from shareholders who sell due to fear of dilution.]
I asked Bernie what he thought the final number of outstanding shares would be. He said he didn't know, it just depended on what the PP holders did. He said it would be ridiculous for him to alter the conversion formula of his debt as Marty requested because the other PP holders wouldn't. He said he planned to convert a couple of hundred thousand in the next few days to bring his average cost of shares down. He said he had sold some shares in the past, but had turned around and loaned the money back to TSIG. He said he is negotiating on a friend's behalf to buy 1,000,000 shares in the next few days from the selling that is going on post-conversion.
Bernie said that the company still needed about $500,000-750,000 to make it until positive cash flow. He believes they have pretty much found it. Apparently, Bernie has been very active in helping find these last funds.
That is the dirt on the PP. That's the good, bad, and ugly news about the divisor in that phrase "earnings per share." Bernie had a great deal to say about earnings. Coming in another post.
Regards, Suzanne
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