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Microcap & Penny Stocks : TSIG.com TIGI (formerly TSIG) -- Ignore unavailable to you. Want to Upgrade?

To: Suzanne Newsome who wrote (30294)	6/6/1999 8:10:00 PM
From: REW	Read Replies (2) \| Respond to of 44908

Suzanne, Let me clarify the source. It is someone that is involved with this type of business. His studies with clients give these results. He has not dealt with music but the varying products indicate these types of viewing figures.

To: Suzanne Newsome who wrote (30294)	6/6/1999 8:17:00 PM
From: Dave Gore	Respond to of 44908

Thanks, Suzanne...now you know why I am personally focusing on the Lifetime deal. I think it is the key, although the others will aid the cause too. If that works even to the tune of $50-100M, then the large number of shares outstanding won't get in the way of a really nice EPS and resultant stock price. The shares O/S and PP are not good news, but all I care about is Earnings Per Share. That's the key number and if they can't get 10 cents EPS out of all these contracts I'll be shocked. ****

To: Suzanne Newsome who wrote (30294)	6/6/1999 11:15:00 PM
From: The Swordsman	Read Replies (5) \| Respond to of 44908

This will be the first part of a response to Suzanne's earlier request that I be involved in determining TSIG's potential revenue from Lifetime Learning and other alliances. This is an exercise in reading comprehension and is not meant to offend anyone. We all read at different speeds and comprehension levels. I'm not the best but maybe here is an opportunity I have to get you all to understand why I have so little faith in the goings on around TSIG and most notably because TSIG has a poor leader, IMHO. Please read carefully the PR below. I have taken the liberty to highlight what I believe to be material words that would ordinarily be ignored. ST. PETERSBURG, FLA. (April 20) BUSINESS WIRE -April 20, 1999-- Agreement Supports TSIG.com's Commitment to Building a Strong Customer Base and Becoming an eBusiness Leader TeleServices International Group, Inc. (OTC BB:TSIG), known asTSIG.com, announced today that it has entered into an exclusive private-label agreement with Nettaxi Inc. (OTC BB:NTXY), a premiere commerce enabled community and portal website with more than 80 million monthly page views. Under the agreement, TSIG.com will provide electronic MusicCards on an exclusive basis to Nettaxi members, allowing them to purchase music CDs, cassettes, and video DVDs over the Internet at prices lower than all major retail or online sources, via the myMusicCard.com website. Nettaxi will sell the customized MusicCards through its website storefront via a hyperlink to TSIG.com's, www.myMusicCard.com site. Revenues from sales of the Music Cards and CDs will be shared between TSIG.com and Nettaxi. The agreement supports TSIG.com's strategy to aggressively build its position in the marketplace by partnering with companies that have strong e-commerce presence and potential. "The partnership with Nettaxi allows us to tap into the online community phenomenon and build our customer base," said Robert Gordon, chairman of TSIG.com. "The customers we gain today will become assets for the future as we continue to execute strategic partnerships in support of our mission to become the end-to-end eBusiness solutions leader." "Consumers will purchase products and services online if the process is easy, safe and delivers good value," added Robert Rositano Jr., CEO of Nettaxi. "Our e-commerce strategy is to partner with companies that can provide such a shopping experience for Nettaxi citizens and visitors. The myMusicCard service promises to deliver incredible deals on music selections from a secure and intuitive shopping environment." TSIG.com recently launched its myMusicCard.com site, one of the first e-commerce sites developed utilizing only Microsoft(R) software. The site enables Internet users to purchase music CDs and cassettes over the Internet at prices lower than all major retail and online sources. MyMusicCard.com offers more than 250,000 music selections from a complete range of artists, and focuses on serving the music needs of consumers. The site has the most robust search capability of any music commerce site on the web, enabling consumers to search by any combination of artist, title, release date, song name and other criteria. private-label agreement Just what is TSIG providing? A 20-unit $10 card? A 3-unit premium card? If a 3-unit premium card, then for how much? If for free with a bet on the come for reload, then what are the anticipated reload percentages? page views I don't presume to know how many discreet people this identifies. But if the 80 million is diminished by a factor of say 8 or 10 page views per visitor then on a given month how many of those visitors are the same? After that's established the what's the conversion rate? While still a good number it shrinks pretty fast. Still I won't look a gift horse in the mouth. through its website storefront Who collects the $10? Nettaxi or TSIG. Just a small detail but important in the realm of cashflow. How's this cash flow? and CDs will be shared Now here's a little beauty that just slips by in the reading. Let's go first cabin and assume, I really hate that word but for the sake of all the optimists we'll use it, so let's assume that we're doing $10 cards and RG got the full $5 bux to TSIG split. First of all betchya he didn't get the 5 bux. Further, betchya, if you look at how he negotiates funding via PP's, that he also gave away the farm, and is paying NetTaxi no less than $0.25 for every CD that's purchased. Now do the math. $5 up front and if the card is fully consumed he gives it all back. The real value of the card is then diminished to the breakage factor. Those cards that are not fully consumed. Wanna take a guess on that one? It will be some but who knows at this early date. Still a sinking fund must be maintained so as to offset the BIG FACTOR. That will affect reported profits in a big way. to become the end-to-end eBusiness solutions leader." Almost to the finish. Here's the dirty little secret that no one wants us to wake up and understand. John Hwang is gonzo. He quit. Period. I sense there were mitigating reasons but a reorganization to bring in core bux I'll bet was not it. That's just for public consumption. Try to e-mail John at his site and maybe he'll respond to you. www.hwang.net/john/ However, back to the issue. If you really believe that for one minute RG or anyone there for that matter has one iota of an idea as to how to structure and manage an E-commerce business even in the most fundamental of ways with CD's I'd say fugettaboutit. History taught us a lesson that thanks to Dr. Frankel would never have been solved by itself. With RG clearly at the helm once again it's “Back to the Future.” IMHO. Just think, when people are disgruntled about their lack of being serviced how many will demand their $10 back. Do you really think NetTaxi will give up their $5? No way Jose. Do you really think NetTaxi will keep the relationship going? No way Jose. Now for the piece de resistance. THE BIG FACTOR. If the program is to give away a 3-unit premium card for free do you believe for one minute that most of those first purchases will be for anything less than Top 100 Albums? No way Jose. Betchya more than 80% will be Top 100. Does anyone here understand why TSIG was developing the Anaheim location. It's been stated by REW and others that it would allow TSIG to buy and fulfill Top 100/200 Albums without going to Valley Media and paying the up to $2 premium per Album. That'' right, some of what TSIG currently ships cost up to and more than $2 bux more than is taken in. Give away a 3-unit card and very possibly ship $6 bux or more out the door. And that's before TSIG ships against the 20-unit card. So you see Suzanne there are some very serious bumps in the road ahead especially since this latest dream team has left RG once again to his own devices. The devil is in the details and RG has never managed the details. There will be more re Lifetime but if you just apply what you may have learned here you might wish that Lifetime is not quite as successful as you would project. The better it's accepted the quicker TSIG goes into the big dumper in the sky. It's the jockey. SC