Conversation with Paul Henry on Wednesday, June 27, 2000 Part 1
First few minutes of our conversation had to do with why the new symbol
change. I knew of companies that went through r/s before and their symbols
didn't change. Paul said there was a new SEC reg. that tsig was abiding by,
and tsig.com didn't even have any say in the symbol chosen. He didn't
know the specifics of the new reg, and referred to what counsel
said to do to comply with these new SEC regs.
He then asked me what the price was. I told him we were up 40%
or so at the time, but I also asked whether he was allowed to
talk about the price. He said yes, but per SEC regs he couldn't talk about
the price movement.
We spoke about the sell-off on Monday, and he theorize that had a lot
to do with shareholders not knowing what had happened to their stock-
e.g. not being able to find a price, et cetera. he said he was inundated
with over 150 emails in two days by people simply asking where is and
what happened to their "tsig" stock.
Then I started to ask some questions about the latest release on
the acquisition of Reliance.
This was rapid fire conversation, so I really didn't have time to take any
notes so I'm solely going by memory. Therefore, I may get some things
incorrect and suggest everyone call and verify.<p>
Paul talked about the Harringtons and the revenues they generated
(I later went and found the background to corroborate his statements
-see posts about Harrington's background excerpt from SEC documents).
Paul said that Reliant despite their sales would have even greater sales
if they didn't have problems with transactions, and follow through.
For example, he said up to 25% of Reliant’s sales failed because
of the poor credit card status of certain customers, and said
this was due to Reliant only using one credit card company to
establish credit for customers. he said w. new arrangement that
customers would be able to get credit cards through other less
stringent issuers.
I asked whether Reliant would be using tsig.com call center. He said no.
But said that Reliant was going to use Affinity's Call center.
I said I thought Affinity per an earlier release was using Tsig's
call center. he said Affinity used some space, but that Affinity's
call center was on the third floor of the other tower. I asked
if this third floor was where the bulk of Affinity's 72 employees were,
and he said he wasn't sure.
We subsequently talked about the synergy between Reliant and Affinity,
and how Affinity will help to maximize per customer sale and also
help target markets better for Reliant's infomercials through
Affinity's data base mining capabilities. Earlier Paul noted that
many of Reliant's infomercials were aired on HSN , a company that
Harrington had a relationship with (again see Harrington's resume).
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