Suzanne.....
Lets look at other reasons for waning investor confidence by first looking at the where the current revenue potential is...and note people bought because of potential w/o first critically scrutinizing Gordon's resume.
Let's also mention that the one person, who I (actually) believe has bought the most based on his own due diligence of tsig's potential, is Martin Frankel. Let's also remember that Gordon has brought credible management on board with him like Guild and credible technicians like Hwang and Ricci.
Let's hope that Gordon understands his limitations. From all I heard, he is the big picture man who to date hasn't been surrounded by the capable detail people to execute on his grand visions.
Let's look where the revenues should be coming from namely the card and cd selling, the Signature Deal, and the distributorships.
If money was being generated, prior to the addition of a third division, from the deals already in place being implemented and executed, then the dialogue on this thread would be hopefully more balanced, and the need for money from the pp wouldn't be as great.
However, from the other side, one also has to be willing to seize opportunities when they are presented, thus the addition of a third division may have had to happen for it to retain Hwang's interest.
First the Signature deal...This deal has continued to be delayed primarily by Signature. Revenues will be generated on a time basis from calls made received from different programs. Annual revenues projected by Signature are significant and largely based on the loads Signature currently receives. Signature like many companies wants to outsource more and more of these services. If all goes well with the first arrangements, TSIG is set to receive an additional expansion of their agreement with Signature. The current deal is in place and isn't being dissolve or anything. The only problem...again...is that the implementation continues to be delayed. New date for starting is June 5th. Certainly of this date ? Up to Signature. Signature original schedule for this was March 15th. The agreement calls for a transfer and ramp up of services to be handled by TSIG, therefore, when the deal is started, it will not be full throttle but incrementally implemented. TSIG's ready to go....However, not having the three months of revenue for TSIG from March to mid June, is significant for a small start-up/ turnaround....part of the pp to say the least.
Eservices ...additional telephone support for other e-commerce sites can be as or more lucrative as the e-commerce.
Second, the BR card sales. Making the agreement was the first step was great. The potential was established. However, just unloading the cards on kids and expecting them to sell them isn't going to produce results especially with a loosely knit groups of teams spread out across a number of regions. This card drive would have benefited greatly from having the distributorship in place to educate teams and kids on the sale of the card, especially since it takes a lot more effort for a kid to explain a card than a candy bar.
TSIG seems to finally have understood the importance of this distributorship arrangement, but in the interim the first go around (ie test) of the card sales didn't work as effectively as it could have thus more lost revenues and greater need for pp money.
TSIG also seems to have been equitable with former CCI dealers, many of whom were screwed by CCI's improprieties. Yet TSIG took time to come to these decisions.....
Now former dealers are justifiably concerned with TSIG ability to service the cd purchases,, because these dealers had no problems selling CCI cards even before CCI had a web site. The problem was getting CCI to bill correctly and deliver cd's.
Yet TSIG had another snafu with the re-launch. I bought cd's from the original site in December and had no problems with delivery. I also received email confirmations. When the new site launched, I had problems like every one else. These problems were resolved and my subsequent orders filled, but the first impression was not a good one.
Consequently, former CCI dealers upon reading the gripes on this thread must have been scared to hell....
Though the cost ramifications of these snafus may have been minimal initially, they have not help to sustain confidence. I noted that TSIG has added a shipped notice to their tracking feature, but I am still also of the opinion that they need to add email confirmation like they had before especially to let people know if items are unavailable or back ordered.
Such attention to basics will make the former and new distributors more confident in the products they are selling....
The distributors IMO should also be made fully aware of all national contracts being distributed in their regions so that they can follow through with phone calls and face to face contact. This is important with all deals, especially the BR and Lifetime Deals.
Remember the beauty if the distributors is that they are independent contractors ...not salaried employees ..therefore, no healthcare, benefits, and no payments of certain types of taxes.
Also these distributors generate revenues, so selling them and having a product that distributors are confident in selling is paramount.
To date, TSIG has not been performing.
Can TSIG get its act together? At least with the slowly improving services and getting distributors under contract, TSIG appears to be making some progress. Hopefully the Signature contract will not be further delayed.
Guess that's why, in addition to the comments you made about Gordon, why this stock is priced as it is or at least in my opinion...
That is also why it is important to have another heavily invested third party on the board to follow through on the concerns of share holders.
Anyway, this time I really am going to get to work.
Before I log off...one more suggestion to TSIG...
FIRE BOB NEWTON He's in charge of getting items executed and he hasn't been performing. He also doesn't appear to be receptive to ideas that he can't claim as his own. He should be held accountable.
Sincerely,
z
cc. Paul Henry. |
