TSIG Message Board - Msg: 4217427

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Microcap & Penny Stocks : TSIG

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To: shawn h. ivens who wrote (48)	4/26/1998 11:05:00 PM
From: gambler	of 93

Well once they announce completion of this buyout of Compact Connection I think that will be the starting point of its climb. I think that everyone doubts that TSIG can actually complete this deal. No one thinks that they have the cash. Which is obvious by looking at their balance sheet. The only way I can see them completing the acquisition is by issuing more stock. If you look at their financials you can see that they have 100 million shares authorized and only about 30 million outstanding. This means that without shareholder approval they can issue up to about another 70 million shares (give or take a million or two) and still be within this 100 million. So 70 million times .18 per share is $12.6 million. Not enough, but remember the share price used to be higher. I don't think many people would jump at the chance to finance them by looking at their financials. Although I would (if I had the money) because I believe this deal with CC will be very profitable for them. You can bet that there are many people with their fingers close to the buy button waiting for confirmation of the deal being done. This announcement alone can drive this stock over $1 IMO. Then once CC gets their online operations going, that will be worth another couple points. Look at their competition's projected earnings for the next 2 years. N2K and CD Now are both predicted to lose money in '98 and '99. CC will, on the other hand, be profitable right out of the gate. So with NTKI and CDNW's stock prices in the upper 20s, I would say that it is reasonable to value CC with the same price standards. Of course the majority of that value won't be realized until it gets NASDAQ listing, but it will come to those who patiently hold on. We all wish we had MSFT at .50 a share many years ago and held on till today. Now please understand that I'm surely not even going to try to compare this in any way to MSFT, the only likeness and the only reason I say this is that this is a "diamond in the ruff" like MSFT was. Those who realize this now and take advantage of the diamond at its current prices and join me in watching the price soar to the heavens will be joining me and my friends on the warm, sunny beaches of Bora Bora. Of course I'm listening to Jimmy Buffet as I write this. wasting away again in Margaritaville... searching for my lost shaker of salt..... lost in dreamland......... Gambler

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