**Bernie Deutsch report Part 2** Net profit divided by the number of shares. If you can correctly predict what these two numbers will be at some point in the future, then you will know what to do with TSIG--buy, sell, or hold. Part 1 of this report dealt with the number of shares. Bernie doesn't know how many shares there are going to be. I certainly don't. Any rationally-based decision on what to do with TSIG stock requires that you make a prediction about what you think the number of shares is going to be.
WARNING!!! The following material contains positive information. Repeat: positive information. If you construe any and all positive information on this stock to be hype, DO NOT READ any further. Repeat: DO NOT READ. If you are forced to read this post at gunpoint, go immediately to the Sword, Ditch, Zeev, Baldy, and Sam posts and read those until you collapse. Or just read the bashing posts that are sure to follow this message; it will have the same cleansing effect.
Earnings is the other number that we must predict to make a rationally-based decision. Bernie feels that TSIG is moving into an era of significant revenue production. Bernie talked about TSIG selling "business opportunities." He didn't use this term, but I took it to mean that he was referring to distributorships. He mentioned "the Kodak card" in addition to the Music Card. We haven't heard much about the Photo Card recently. Bernie expects TSIG to sell 10 distributorships soon at $25,000 each (on average) for a total of $250,000. That one figure represents 2.5 times the entire revenue reported in the first quarter.
Bernie said that in the month of June, TSIG will take in $40,000 of revenue related to TEMPO. TEMPO compiles CD's for companies who want to sell CD's with the company's name on it. For example, TEMPO produced the Victoria's Secret CD. Every CD TEMPO produces in conjunction with TSIG will have a free electronic 3-unit Music Card. TEMPO pays TSIG 10 cents per CD produced. Cost to TSIG is zero. Some of the people will use their Music Card to buy CD's, and some will upgrade to a 20-unit Music Card. TEMPO believes it can produce 100 million CD's. At 10 cents apiece, that is $10,000,000 of revenue to TSIG. Negotiations are in progress with McDonald's to create a CD for them.
Bernie termed Signature as having "huge, huge potential." The first contract of $30 million will involve 125-150 operators. There is a bank in California that specializes in the Hispanic market. Through Signature, TSIG will be handling the loyalty and rewards program for the bank's credit card customers. TSIG will collect for its services the following: $35/man-hour on the phone, its phone bill, and 10% of what the TSIG agent sells. For example, a customer calls, wants to go to Spain, cost is $3,000, 10% is $300. [Clarification: I assume the "loyalty and rewards" program allows people to buy goods and services at discount prices. Any correction of this point is welcome.] TSIG estimates it will collect $45/man-hour, its employee costs are no more than $15/man-hour, and the net will be $25-30/man-hour. The plan is to start out with 10-20 operators and ramp up to 125-150 operators over 12 months. [Note: $25/man-hour x 125 people x 12 hours/day x 25 days/month = $937,500 per month.] According to Bernie, Signature has 5 other banks waiting for this to get started; they want to do the same thing.
Lifetime Learning may have 30-40% participation based on preliminary response to the mail-out. These numbers have been crunched before. I refer you to my analysis in post 30182. A ridiculously conservative estimate came in at $51 million in gross profit, and an "average" estimate came in at $372 million of gross profit.
Bernie says if we do these numbers, the stock will not be at 6 cents.
As previously mentioned, Bernie Deutsch is a PP holder, owns (together with family and friends) 15,000,000 shares, and has invested $1.3 million in TSIG. He is an unabashed supporter of TSIG. However, he spoke in gruesome detail about the share conversion still to come. The bottom line is that Bernie expects the outstanding share total to be large and the net profit to be large also.
Disclaimer: I present this information because it comes from a knowledgeable source close to the company and may be of interest to people on this thread. I made every effort to accurately report the conversation, but Bernie talks New York-fast and well, I'm from the South. If anyone notes any errors, please bring them to my attention, and I will correct any conclusions based on that erroneous information. Other than to ascertain that I was talking to the real Bernie Deutsch, I have not confirmed any other information in this report. TSIG is a very high-risk stock. Anybody considering purchasing TSIG should do extensive and thorough due diligence.
Regards, Suzanne
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