Let's take a look at where TSIG might be based upon what has been surmised to date.
It is anticipated the PR for the funding will raise it's little head this week. With this event the conversions of the prior PP may stop as there won't be a need for any further draws from them. They will have to act upon whatever they have left over. That should leave them with finite shares to work with.
It is also anticipated the new PP will come with favorable equity arrangements. The PR should spell this out for the shareholder. That would further indicate finite shares.
The Lifetime deal seems to be progressing according to plan. The second mailing to the PTAs and Music Depts went out. Lifetime advised TSIG to send the mailing to the principals across Labor Day as that is when all the schools should be in session. My guess is the principals will get mailed again a couple of weeks later so they get two notifications also.
The calls to the music depts continue. Remember this is a deal within the school deal. The extra kick to the Lifetime deal no one counts.
The interest from the schools has been such that hopes of a successful venture remain high. Lifetime indicates the responses of commitments from the schools should be about complete enough by about the first of Oct to have a close estimate of the participation.
An answer to a question about how the card payment and delivery between the schools and TSIG is as follows. The schools place an order for 1000 cards. The schools send $10,000 with their order. TSIG sends the cards and $5000 back to the school.
Remember there is a grant to the principal to spend in any way he sees fit for $250/$5000 in card sales.
As a first year effort, TSIG thinks a minimum of over 6000 schools would be a success. I've wanted a minimum of 7500 and hope for 10000. My estimates on a minimal basis of card sales has indicated a $24m return to TSIG. Theirs shows $20. Neither of us consider CDs. This would be almost all 4th quarter. These should compound next year especially if this year is a success with the schools participating as the word would spread throughout the system and there are some districts placing TSIG in a few schools as a trial.
The returns should continue throughout the school year as secondary drives are done, PTAs continue their efforts, potential further commitments are made by additional schools and music depts, and the music depts then kick in their drives for the funds they need.
The drive for the 4-H clubs begins shortly. There will be a mailing to the clubs Sept followed by a continued mention in their monthly newsletters. The headquarters of 4-H feels about 1/3, or 50,000, clubs will participate.
These individual clubs are made up of a tightly knit group. The competition within the clubs should push for greater returns. If only 100 cards/club are sold, this would rival the minimum projections of Lifetime and should run throughout the year much like the music depts.
TEMPO kicks into action this month, call it Oct 1st. They are anticipated to place over 100m CDs this year. TSIG should get a dime/CD. Any additional deal TSIG is closely involved in would return about $1/CD. There are deals in the works.
Nettaxi is now back to work on getting TSIG up and on their portal. Evidence of the work has been reported. About 2 weeks should show the results.
ECOnet could be a sleeper. If it is accepted by the public as thought, it's returns could be substantial. There should be a further clarification of TSIG's involvement later this week. This is not a refocus of the company. It can be handled with minimal expense and does not step in the way of the primary plan at all.
Now take the company out to November. Is there life after Lifetime? Yes!!
With the success of the Lifetime venture documented, several things can happen.
TSIG can now go to the major charities and show without a doubt the card fund raising model works. The closing rate with the charities should go through the roof. Many other deals should fall into place. Name brand associations should become commonplace.
The interest of qualified committed distributorship applicants should become available. The entry fee can also be raised. The network should expand rapidly.
What could be in the works for the announcements for September? Gordon stated without going further that he is working on several large deals. A couple of them could rival or beat Lifetime. NMF, TEMPO, GE Capitol may add to the volume.
What would be the focus of TSIG? TSIG is a Card company. Gordon has committed to bringing large national contracts to the table. He still won't have an advertisement budget.
Tsig is just stepping from the most trying time of it's existence and is still here despite an extreme effort by many to bring it down. I think that shows something.
Bob
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