Hello everyone,
I just wanted to start the new year by saying how happy I am.
"I am happy."
There, I said it! Why am I happy? Because of TSIG, of course! IMO, there is only one issue that I am uncertain about with the company, and that is the outstanding shares issue. (Cash flow is still a minor concern, but with the PP and new muscicard deals, I don't think cash flow is any more or less an issue than for any other company.)
Everything else will happen, I think. The site will be improved by cohesive. The company will sell musiccards and music. The company will have downloadable music with the partnership with amplified. The company will show a huge increase in revenues, and will probably show a profit. The company will be known as one of the big "four" in the industry (CDNW, NTKI, KTEL, and TSIG). The company will generate interest from individual and institutional investors. The only unknown is whether we will have 57 million shares outstanding or 65 million or 75 million or 85 million. Is this an important thing to know? Certainly! How important? Well, lets see....
As we all know, the number of shares outstanding will usually help dictate the stock price. But, how does the number of outstanding shares affect a dynamic stock such as "TSIG99?" Well, I suggest to you that the float is just as important, or more important, in determining how much a stock will appreciate in value under substantial buying pressure. TSIG's current float is approximately 37 million shares. After stock options are executed (the major reason the number of outstanding shares will be increased), and the PP shares are converted, I don't expect the float to change all that much. (This assumes that the PP shares are restricted - I believe this was stated by a poster a while back, but I am not sure - and that insiders will not dump their options the moment they exercise them.) Well, if the float doesn't increase all that much, then the number of outstanding shares becomes more of a side issue, rather than a major issue, with respect to stock price. And the stock price is the "bottom line" of what we are interested in, after all, not how many outstanding shares there are.
BTW, I don't expect to see many of the stock options to be executed for a few years, as most of the options are good until 2000 to 2003 or so.
Also, as far as the new shares being created by the PP, this is a better situation than the previous few years, when shares were sold on the open market in order to generate the funds needed for operations.
Ditchdigger, comments? (I mean real comments, not your typical "the world is going to end" crap.) Also, have you completed your homework yet? (https://www.siliconinvestor.com/readmsg.aspx?msgid=7074724)
-Dave |
