<<Suzanne, according to your calculations has RG sold 70 million shares into the float?>>
Andrew, 70 million is the figure Zeev Hed came up with. When I first read his post, I assumed there was some mitigating explanation. There is none. His number may be off a little, but I have not recalculated it. The precise figure is not important to me; the relevant concept is "boatload."
I mentioned recently that Paul Henry did not answer my question as to why the company never had a secondary offering. It occurred to me while ironing the other morning what a stupid question that was. Gordon was pretty fresh out of Phoenix when he started TSIG. You can debate all day about Phoenix, but these facts I am fairly certain about:
1) Gordon was telling everybody that everything was OK as the stock price continued to tank.
2) Many, many shareholders lost large sums of money.
3) Gordon walked out of Phoenix a rich man.
The Phoenix connection is like a rock around TSIG's neck. It frightens people out in the real investing world. Can you imagine the reception a stock offering would have been given once people understood the Phoenix connection?
So the only way for Gordon to raise public money was to put up his money, receive shares, and sell the shares into the float. Gordon told SI investors one time when a hue and cry was raised over the registration of 7 million shares that he had not sold the shares into the float, he had placed the shares with a third party as collateral for a loan, the proceeds of which he was lending to TSIG. Is that preposterous? We all accepted it. (All but Jeff Berry, that is, but that's another long story.)
Here we are. Investor confidence is at a 52-week low. The stock price has fallen below support at $.20. A shareholders' meeting to increase the authorized shares by 50 million looms right around the corner. We get closer and closer to the day that the PP can convert debt into shares. Robert Gordon who settled a charge by the SEC without admitting guilt and who is tainted by Phoenix, has an absolute stranglehold on this company. And people come on this thread and ask where is the selling coming from? Hello!
In the meantime, a huge constituency of shareholders is begging/insisting/demanding that Marty Frankel be placed on the board. The company refuses. Let's see. What excuses have I been given? "We don't know Marty." "Why would we put a doctor who has no business background on the board?" "Other parties we have talked to are against his being put on the board." Here is the company standing at the brink looking over the edge into the chasm below, and management is spouting off this BS! Is it no damn wonder this company is in trouble?
At the same time, the people who know this company the best—people who have visited, people who understand what TSIG is trying to do—they cannot hardly express how great the potential is with this company. Such a bright, bright future and such a grim current reality. Making Marty Frankel the first independent director of the two needed for NASDAQ listing would be a giant step in bridging that grim reality with that bright future.
Regards, Suzanne
|
