******ALL*******
Gambler and I had a conference call today with Robert Gordon, the CEO of TSIG.
The following are answers to various questions we posed to Mr. Gordon that we gathered according to questions and concerns on the thread.
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1-The private placement is in final negotiations and they have had commitments for entire $7.5 million dollars already.....Gordon anticipates full completion by mid July.
2-The website is scheduled to go up by the end of June (why rush the site when it can be enhanced?). It will be done by June 8, but testing and linking to various search engines, call centers and stuff like that will take a week or 2 to be perfectly in place.
3-TSIG's call center is second to none. They can handle 2-3 thousand calls per hour.TSIG has been undergoing a complete overhaul of their call center technology. In fact Lucent completed their portion of the overhaul today. Gordon stated that they don't have better technology than everyone else, but no one else is better.
4-The IRS question; TSIG does owe the IRS for withholding. This is not a common TSIG practice but the mgmt that is responsible for this and many unnecessary expenditures has since left the co and has been replaced by better mgmt. The IRS will be paid off as soon as the PP is completed. Gordon says this will be immediately taken care off. They are not on bad terms in any way with the IRS as a result.
5-Gordon expressed that the statements 10K and 10Q do not reflect completely accurate #'s for their liabilities. For example, there was a phone bill for $400k that they were overcharged on and that they actually only owe $70k. They were incorrectly billed. As another example, there was a piece of software listed on the liabilities for
$600k that has never worked. Those are just a few examples, but Gordon says that the liabilities listed can be reduced to a figure of about $1.4-1.5 million which brings it to a very manageable #. Gordon assured us that the liabilities are not overwhelming at all. The situation looks much worse on paper than it actually is.
6-Gordon's 5 million dollar line of credit is a non-issue as well. Gordon says the 5 million dollar loan is not going to be needed due to the private placement. Again, the PP is in final negotiations and they have commitments for the entire 7.5 million. The deal will be complete by mid -July but that does not mean that they will not receive cash before then Mr. Gordon was quick to point out.
7-The Emerging public co's show is scheduled for June 25th but if the site and the call center is not 100% running and perfect by then it would be ridiculous to air the show without being able to talk about
CCI's site and have people visit and order immediately after the show airs. After all with an audience of over 100 million viewers this will prove to be a major advertisement, not just for investors in the company, but for the website also. Why waste the money if they aren't completely ready? In the event that everything isn't completely in place the show will most likely air by mid-July.
8-Gordon said that all negotiations as far as advertising, marketing and financing are centered around enhancing shareholders value. Gordon said the PP is at a very favorable price to the shareholders.
9-Turnaround time will be 48 hours and in most cases 24 hours for CDs to get out the door of CCI. In rare CDs it might take a bit longer..
10-Gordon stated that the main difference between CCI and CD Now and N2K is that CCI will not only offer the option of ordering online, but also the option of a live operator or a state-of-the-art voicemail system ordering. This will alleviate many concerns about the security of online shopping. CC will also have a 24-hour help and customer service line supporting the web page which no other companies offer. This will keep customer's coming back; customer service is very important to CCI. And as many of you would agree customer service is #1 in any retail purchase situation.
11-Gordon stated that the teleservices biz is going to accelerate greatly as well as CCI's biz. They are going to be doing many deals with Fortune 100 type companies and the revenues will be phenomenal. News on those deals probably won't be until around September as most of the upcoming news for the next few months will concentrate on promoting CCI, but the Teleservices portion is very very strong and
getting much stronger. People tend to forget about the enormous possibilities alone in the teleservices portion of the business. TSIG in no way has all their eggs in one basket.
12-Also a question about the $250k and $2 million that TSIG has to spend on CCI was raised and Mr. Gordon stated that these obligations to CCI have already been fulfilled and the expenditures have been made already.
13-Also Mr. Gordon told us that Heideman (spelling?) just started on Monday in the call center and morals are running very high this week and everyone is very upbeat.They are excited about all the new business that is coming.
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To summarize: the conversation was very encouraging and upbeat. TSIG is hard at work to cover every base and put together a program that is like no other. They do notwant to be second best to any of their competition. People are working round the clock on the website and other portions relating to the site. Alliances & partnerships
are in negotiations as we speak and many are nearly complete and will be released on a timely basis.
Mr.Gordon was very polite and patient. He was concerned that investors know what is going on. He seems like a very intelligent man and a good leader. I believe we are all lucky to have him in place. He had to get off the conference call after a while and we had 1 or 2 questions left for him, but he had another conference call regarding the private placement deal so we figured that was more important. LOL He said he very much enjoyed talking with us and that if we wanted to we could get together on another conference call to answer any remaining questions. So because this option was given I think this will be an excellent opportunity for others on the thread to post questions that myself and Gambler can get answered on the next call. So post your
questions and we'll get them answered.
I hope this helps alleviate some of the concerns expressed on the thread.
Take care all.
Best regards,
Beeblebrox
Gambler |
