Zeev,
I have brought this up on the board before and some have misunderstood or did not understand what I was trying to say, but doesn't the following make sense to rectify the lack of share value in TSIG's stock.
....and I hope RG and PH are considering.
Assumption:
Suzanne has done an excellent job of trying to evaluate the potential revenue and profits for the upcoming 6-18 months.
If TSIG can deliver on those revenues and go cash positive by or in that time frame, they have the option to reverse the dilution which has occurred.
If the price remains at .05 or under and they are making positive cash, they have the opportunity to buy back the shares in the open market at an extremely low level.
300,000,000 shares @ .05 is only $15,000,000.
Of course they wouldn't buy all the outstanding, so this is the highest maximum cost.
If the revenue and profit figures even come close to giving them the opportunity to have that kind of cash available, I believe the first thing they should do is a stock repurchase.
The lower share count combined with an earnings stream would increase the book value on TSIG significantly.
This in turn would start a cycle toward greater financial health allowing for better refinancing of old debt and maybe retirement of escrowed outstanding shares.
If during this process, the share price increases significantly to make it more prohibitive, then I don't see where share holders would have any complaints, since there shares would now be worth a great deal more.
I bring this up because most companies that I see doing a R/S do not have the revenue or cash income to do a stock repurchase and end up cutting their own throat.
TSIG on the other hand has that opportunity, if the earnings come in.
Any comments welcome.
Barry |
