If an "inability to continue clause" constitutes a rule-out factor for Dr. Zeev Hed, so be it. He is entitled to that opinion. If a floorless convertible debenture constitutes a rule-out factor for Ditchdigger, so be it. These are reasonable approaches for investors to take.
The longs look at the projected $300 million in revenue that is under contract. The longs doubt that a measly $2.5 million debenture can sink a company that has as much potential as TSIG has. So who is right? Ditchdigger/Hed/Berger or the longs (REW, Marty, slaffe, Jazzbo, Mski)? The interesting thing here is that the market will tell us who is right. In 6 months, 1 year, or 2 years the market will declare the winners! Stay tuned.
[An aside. The '97 10KSB published this time last year had the same "inability to continue clause." And the show keeps rolling on—contracts signed, people hired, web sites opened. There was a big brouhaha last year over the money TSIG owed the IRS. Surely the IRS would come in and shut the doors over unpaid taxes! So when VSI declared bankruptcy, they wrote off large sums owed the government. Score another one to Gordon as he once again successfully negotiates a minefield.]
I was troubled when TSIG did not make the terms of the PP known in a timely manner. After all, they couldn't be kept secret forever, delay only fueled the negative suspicions and speculations. What did the company gain be delaying this info? IMO, the web site wasn't really ready to go online when it did on Mar. 26 (or 29). It appeared unfinished to me. However, the Babe Ruth cards were being sold, stockholders were clamoring, and the web site went up. Around this time, it was announced that options to employees were awarded at $.41 (a few cents below the prevailing stock price). A few days later, the 10KSB is filed, the PP terms are known, and the stock price tanks. If memory serves, the stock price always tanks after a 10KSB or 10QSB is filed. Did Gordon orchestrate all these events in order to set the employees' option price at $.41? Your call.
Marty is going to St. Pete—to make the pilgrimage as he says. BTW, have we posted all the questions we want him to ask? I suspect that Marty is going to do more than simply ask questions and listen. I suspect that a man whose messages average 2+ screens in length is also planning on doing some talking. Oh, to be a fly on the wall!
Regards, Suzanne
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