re: Conversation w. Kaston..
In response to an email I received,
I wrote the below email.
I was impressed that Kaston called me
so quickly after receipt of my email to PH
but per this email response below, everyone
may quickly ascertain that I wasn't completely
happy with the content of my conversation
with Kaston.
z
=================================
Xxx,
No I was not completely satisfied with Kaston's response.
Our conversation was "heated" at times.
I think more people, who have a history with tigi,
us so called longs, should make sure that Roix is aware
now that he does have share holders to answer to and how we feel,
even though Roix was in no way obligated to go through
with the closing of the acquisition as Kaston pointed out,
even if Roix use to take a larger salary from Affinity and
even if Roix had to incur tsig's liabilities.
.
Kaston said judge Roix on what he does per filings that will
reflect his managerial and revenue growing abilities which
won't be "judgable" till the first quarter numbers are released
mid May reflecting the combined companies..
I'm still though of the opinion that Roix demonstrate "modesty"
and "frugality" until audited numbers are released that support
his commissions while maximizing the bottom line in its
fullest by foregoing commissions.
I told him that I had no problem with Roix's salary or bonus
structure if he meets the targets upon which those bonuses
are based. I'd have no problem if those numbers were increased
if he exceeded those targets. However, taking revenues
prior to demonstrating those targets have been met, to me, is not
consistent w. "...I will give 100% to create REAL shareholder value..."
Simply even deferring commissions would go a great way
in demonstrating to shareholders that Roix intends
"to show the money" to share holders before taking his
commissions in the preferred
form of a quarterly or bigger year end bonus.
Kaston again referred to the structure of the deal changing
making Roix the CEo while not also noting that Roix percent
of ownership increased with the number of shares he received.
Kaston made the point that without Affinity, all existing share
holders would now be left with a bankrupt or more diluted company
Kaston made many valid points. However, he attributed the lower
share price of TIGI as reflective simply as the impact of dilution
due to the acquisitions without acknowledging that the lower price
was also reflective of skepticism from existing
and former shareholders, who rightly or wrongly
perceive particularly the "commission" language of the 8-k
as Roix putting himself ahead of shareholders not unlike
his predecessor Rob Gordon.
So my opinion remains, if all revenues go to maximizing
the bottom line, Roix will be more wealthy from the
appreciation of his 12 mill plus shares then he'll
be from his "skimming". Plus his options won't be under water.
Moreover, if these commissions
are based upon incentives, then Roix should at least
defer those commissions until he has demonstrated
he has met targets and take a larger bonus rather than
weekly commissions.
Show the share holders in audited filings that Roix
is meeting and exceeding targets BEFORE taking
commissions w. a larger bonus substantiated by RELEASED
reports. Not before any such filings are released.
Again don't simply reward oneself before demonstrating to the
company's shareholders that he is worthy of every cent rewarded.
Moreover i'd still like to see a share buy back program at
these prices since if tigi has enough revenues to pay these
commissions, tigi has enough revenues to buy back shares instead.
Fewer shares outstanding meaning less dilution in conjunction
with continued revenue growth and after tax and audited earning
will "...give 100% to create REAL shareholder value..."
If Kaston wants to demonstrate decent IR to attract new shareholders,
he should express his opinion to management to do what would
be good PR for existing shareholders.
Despite our varied disagreements, we both expressed optimism
about the result of the mergers, but such optimism won't
mean a thing unless the quarterly numbers give basis
for any such optimism.
So yes I suggest others express their feelings to
both Kaston and to Roix.
Sincerely,
"ztect"
cc. skaston@tsig.com
phenry@tsig.com
sroix@theaffinitygrp.com |
