Phil:
Just posted the report. Didn't give an opinion. TSIG is obviously a turnaround situation. Based on the excerpts below, TSIG appears to be aggressively reducing it losses by reducing its expenses.
With all the banter on this thread, I was just surprised that the "good" news wasn't discussed on the thread.
Operating expenses for the same period decreased from $3,801,009 to $1,127,366, a 70% decrease. For the period, the Company sustained a net loss of $877,571, compared to a net loss of $2,836,702 for the same period last year, a decrease of 69%...Excluding ... adjustments, the loss from operations for the period would have been $2,103,571, a decrease of 26% from the same period last year.
The company is not only reducing its losses, but it is taking the necessary steps to restructure its business to become profitable in the future by redefining its focus and bringing in new management.
In response to the continuation of the operating losses from the travel-related teleservice operations, the Company initiated aggressive restructuring during the reporting period. The members of the prior senior management departed from the Company in the second quarter. The Company has brought in a new management team and is making fundamental changes to its strategic focus. A new president was hired in August along with new operational and financial management
Due to the difficulty to operate profitably in a commission-based travel environment, the Company is targeting its sales and marketing efforts toward traditional outsourced teleservices
In addition to seeking new revenue sources for the Company, there has been a substantial reduction in general and administrative expenses.
The Internet site and the call center are currently operational. However, no revenues for CCI were recorded in the reporting period.
The quarterly report didn't even take into account TSIG's newest business acquisition and enterprise, which uses its teleservice operation and expertise to give it an advantage over its online competitors.
So even though the report, in places, is brutally honest, the report does demonstrate that TSIG is succeeding in its efforts to turn itself around. These demonstrated efforts as displayed in the report most likely are the reason for the large move up on Friday after weeks of trending downward.
If TSIG can sustain these efforts (reduce overhead while restructuring business) plus concurrently benefit from Internet hype, TSIG's stock can go up significantly IMO- especially because of its advantages over other Internet CD retailers. These advantages being the aforementioned telephone support and the much discussed "card".
z |
