Summary of DD from 12/15
News:
biz.yahoo.com
Telephone conversation with Mr. Paul Henry, Investor Relations for TSIG and Member of the Board:
1. CCI acquisition to be completed likely in January, awaiting audited financials from Mr. Piercy and CCI. Upon acquistion, TSIG takes possession of the California Corp. and its distributorship of MusicCards. TSIG already receives all earnings from the CompactConnection.com and any MusicCard contracts/deals they have or will sign.
2. Another PR this week. When? Not able to comment.
3. Another PR next week.
4. Several PR's in January.
Both from my and my associate's conversations with Mr. Henry, there is a great deal of attention on the teleservices side of TSIG. They finished a multi-million dollar upgrade of their call-center in the last six months, making them among the leaders, if not the leader, in call center technology and capabilities.
The teleservices industry as a whole has an average P/E of 27.9. Any contractual earnings obtained by TSIG can be used to calculate a reasonable share price by multiplying per share earnings by 27.9. To obtain a share price of $5, earnings of only $0.18 are necessary. Earnings of $0.50 per share could result in a fair share price of $13.95 based on teleservices alone. Earnings of $1.00 would result in a fair share price of $27.90.
TSIG is in the process of increasing their teleservices employees from 15 to 300. I would suggest this is in response to signed or soon-to-be signed contracts for teleservices. Mr. Henry made reference in a phone conversation on Monday that a HUGE teleservices deal was either consummated or in the process of being consummated. What huge means, I am unable to speculate.
The recent association of Mr. Phil Esposito, hockey hall-of-famer, provides TSIG a connection with the hockey industry for promotion using the MusicCard.
The recent association of TSIG with amplified.com provides TSIG unprecedented positioning to provide a one-source music delivery site for both CD's, cassetes, and digital music. With Diamond Multimedia already having a portable digital music player on the market, which has been met with huge demand and praise, and both Saehan Information Systems and Pontis Gmbh to have a portable digital music players to market in the next few months, the income potential and demand is beyond even the wildest of expectations.
REW had a phone conversation with Mr. Gordon, CEO of TSIG, on Monday. During that conversation, Mr. Gordon indicated REW's theoretical stock price of $5 in the next 3-4 months is an underestimate based on deals consummated or in the process of being consummated.
With TSIG's most recent association with Cohesive Technology Systems(in the press release today), TSIG is positioning CompactConnection.com to be the leader in on-line music and potentially on-line travel, sports, books (TSIG has already begun to establish those businesses by acquiring independent web site domain names for such ventures). Cohesive Technology Systems is associated with Netscape, Sunrider International, Microsoft, N2K, Hewlett Packard, Oracle, GTE Internetworking, Wells Fargo Bank, Ameritech, the Chicago Tribune, Georgia Gulf, and others. TSIG's association with Cohesive Technology Systems is evidence of its vision and capabilities in becoming a leader in internet commerce. Dr. Martin Frankel's contribution to this association is evidence of his continuing commitment to TSIG and its shareholders, and his vision for TSIG growing into the multi-billion dollar enterprise it is positioning itself to come. I humbly say thank you, Dr. Frankel, on behalf of myself and the many hard working, diligent investors in TSIG with whom I have been developing and continue to develop friendships. I sincerely wish, both in my personal interests and in the interests of all who read this thread, that you continue your excellent posting and sharing your investor experience and wisdom.
If as they say "birds of a feather flock together," TSIG is ready to fly. |
