Patricia, I tried to rush back home as fast as I could but caught only the last 15 minutes, here are few things that RG stated quite clearly, the registration statement (the last SB-2, I presume, but he did not specify) is effective as of early last week. It must be the 50 MM shares since he stated that the registration statement was effective within three weeks of registration (May 7, 1999). Thus these shares are now completely free to trade, to the extent that the PP's convert, of course.
To a question asked by a charming lady (I could not catch her name, but her question was concise and to the point) that more or less asked why the PP's were given such latitude, such as shorting and shorting against the block, RG first attempted to say that such latitude was not given, (at which point said lady quoted as if from the SEC documents that such latitude was indeed granted) but then referred to the fact that the document was a legal document and he did not know all the details. He then stated that in essence that getting any financing was difficult and that this financing was what allowed the company to survive. I think this response was quite truthful, companies in TSIG's position cannot pick and chose their financing and that is why the floorless bandit pounce on them like vultures. As an aside, this same fact is why I am always weary of any company that is forced to use floorless for financing, it is the best indication that their financial back is at the wall.
RG also stated that so far only $3 MM of the PP was drawn down. He also stated that if positive cash flow would be available, the balance of the pp can bought out (but I presume, only to the extent that the PP's do not convert first, that is my conclusion, not Gordon's remarks).
Gordon implied that the Signature deal will start during this month, but there were no indications as to the potential profitability of that business.
He stated that the cost per card will be only pennies and that this is a very low cost to buy eyeballs going to your site.
(he mentioned that AMZN would pay $25 per eyeballs brought to their site, but I fear the comparison is not exact, since AMZN gets a lot of "repetitive eyeballs", while TSIG's eyeballs are more likely to be unique events, but experience will have to tell us that in the future).
He also stated quite unequivocally that the company will generate positive cash flow by October and that the last quarter will be profitable.
Since I have not heard Gordon prior promises in that field, I cannot indicate how much faith one should or should not have in this statement.
I suggest that it would behoove all here to try and develop a profitability model of the two businesses TSIG is concentrating on right now to see if indeed positive cash flow could be generated from these two businesses within the next three to four months as indicated by Gordon.
Good luck to all.
My general impression of the conduct of the CC (the part I heard) was underwhelming, a gentleman (I believe he called himself Steve?) tried to monopolize the floor, with his prior experience in venture capital, and with quite a number of additional extracurricular matters, but could not formulate a single concise query that Mr. Gordon could reply to. Is this someone from this thread?
Zeev |
