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To: REW who wrote (30615)6/9/1999 12:16:00 AM
From: Suzanne Newsome  Read Replies (2) | Respond to of 44908
 
I must come out of lurking mode briefly to correct information I presented in my post #30294 in which I attempted to project revenues from the NetTaxi deal. That information is summarized here:

***NetTaxi Gross Profit Projection***
NetTaxi web site has 90,000,000 page views per month
The average visitor views 10 pages
9,000,000 people visit the web site per month
Assume only 7,000,0000 people visit the site
3-5% of site visitors are looking for music
Assume 3% or 210,000 people click on MyMusicCard site
Of the 210,000 visiting the site, 25% or 52,500 actually make a purchase
Of the buyers, half (26,250 people) only buy one CD ($26,250)
The other half of buyers buy 1 CD and a Music Card [$26,250 + $5(26,250)] or $157,500
Total monthly gross profit is $183,750
Annualized gross profit is $2,205,000

In a very brief conversation with Paul Henry this afternoon, I asked him about the details of the NetTaxi deal. He said that wasn't public, and he couldn't tell me. I told him I had read all kinds of details all over SI written by someone who doesn't own any shares. He begrudgingly gave me a few details.

The card split is $5/$5. Every NetTaxi member gets a free 3-unit promo card. The CD revenue is split.

I would conclude that the number of NetTaxi people going to the MyMusicCard site would be much higher that the 3% I assumed in my projection because of the promo card. People will be curious. CD sales will probably be much higher. Card sales will possibly be lower. Profit from CD's will be less due to revenue sharing.

Commentary: Sunday morning I posted to Sword that rather than bash, why didn't he respond to the revenue projections. Sunday mid-morning he posted he would try. At 11 PM Sunday night, Sword posted a long message (30353) which was a scathing attack on the NetTaxi deal. He quoted the entire PR and highlighted several parts. He then went back and came up with the most amazing conclusions based on these highlighted sections. It was a classic case of adding 2 + 2 and getting 8. I was furious that someone would dream up such BS and post it. I posted 3 times very late Sunday night with smoke coming out of my ears.

After calming down, it became apparent what had probably happened. Sword had to make a phone call on Sunday. My source doesn't work weekends, but his apparently does. From this conversation, Sword gained some unique insight about the NetTaxi deal in addition to details that no one else seems to know. He mentions the "transaction point", i.e. the time and place at which the $10 is paid. He talks about a sinking fund that must be established. He suggests $.25 as an amount TSIG might have to pay NetTaxi for every CD sold. He refers to things that I have not seen mentioned on this thread. It was almost as if he had been talking to a salesman.

Did he talk to a NetTaxi person? The information Sword presented revealed pretty deep understanding of the TSIG inner workings. Did he talk to TSIG management? The challenge was extended, accepted, and fulfilled all on a Sunday. Who would Sword be able to talk to on a Sunday that could provide the analysis and insight into the deal that his post revealed?

Paul Henry never did tell me how much the revenue split on the CD's was. If someone were to call him tomorrow and ask, it wouldn't shock me to find out it is exactly 25 cents—the very same figure Sword pretended to pull out of the air in his post.

At one point I thought I should apologize to Sword because he was right and I was wrong. However, if he had brought out the same points and attributed them to his source, my blood pressure wouldn't have been 300 over 500 Sunday night. It was his pretense of getting all his incredible information from the PR that infuriated me because I thought he was adding a liberal dose of bashing.

So, Sword, say hello to Rich for us.

Regards, Suzanne



To: REW who wrote (30615)6/9/1999 12:19:00 AM
From: The Swordsman  Respond to of 44908
 
A response to RB's JJ

I just love the very highly educated, or so you say you are, types. You're so full of psychobabble and so full of yourselves that's it's rather easy to take you apart after you've shared a little bit more of yourselves with us.

And please don't go and get your head inflated because I'm running through this exercise with you. It's really for the non-initiated lurker that's about ready to plunk down the next house payment or the price of a few hundred shares of Dell, a real investment.

Let me count the ways;

Followup from RB poster
By: pairwize
Reply To: 11002 by Mr._Moto
Tuesday, 8 Jun 1999 at 10:28 PM EDT
Post # of 11021
PP comments
mr moto:
I have followed this PP from its inception and believe that I understand the terms and
conditions quite well. For all intents and purposes it is floorless At this point I would recommend that if you really believe this you would best be served by contemplating upon just why the CEO of this company has been patently lying to the company's shareholders and then do a bit of soul searching as to why with your level of education, especially your very insightful understanding of the psychology involved re the motivations of various and sundry human endeavors as to why you would continue to trust this person with the responsibility of maximizing your investment. After all if you really believe what you said, and you have been here and reading all the posts as long as you say you have, then the man is a liar, plain and simple. (although not strictly so) and pray tell, just how do you define FLOORLESS “not strictly so?” and I agree with those who have speculated Speculated? Speculated??? that some of the pp investors have diluted this stock. Now that's a good one. Where in the world could you even begin to believe that it's ONLY speculation that the PP investors have diluted this stock? That's funny.

In other words, SC and others from SI has provided some sound analysis of the pp and I dispute little of what he says about it (although I could certainly nit-pick some points). Please nit-pick away. There are flaws and some conjecture in what I have written. Where would you start. I have just been recently updated on a most material aspect of some of my suppositions. And it's not good for any of us if I was wrong and the new data is as right as it appears to be. Nit-pick away… please. It reflects desperate measures for desperate times. Thus, although the terms of the pp were far from ideal it was all that was available. No PP (on those terms) = no company. I could not agree with you more. However with that said, has your research also given you an insight as to why TSIG is in this financial pickle in the first place? Or if you go back 8 months the second time in the first place? Or if you go back 16 months the third time in the first place and so and so on and so on and all the way back to Phoenix for the many many many times there in the first place? In this sense, it was good because the company survives with business plan intact, albeit trimmed and streamlined as of late. You really are funny. Albeit trimmed and streamlined. Hell you say. The only thing that's been trimmed and streamlined are the shareholders that have been misled all along the way. Shareholder equity has been trimmed and streamlined. Right into the CEO's pocket in the form of egregious compensation. Trimmed and streamlined in the form of massive dilution when there may have been far less painful methods of financing but possibly without benefit to the CEO. C'mon JJ you can do better than this. I just know you can.

In my opinion, our focus must shift from PP issues and stock price to marketing and execution. We all agree. Best focus this chant in the direction of TSIG's CEO. His only focus over the years it would seem has been PP issues and stock price. And not in a very rewarding way to be sure. Not rewarding for the shareholders that is. Certainly rewarding for him, however. Revenues / profits will make the pp a moot subject if the company strategy comes to fruition. I see no reason why it won't. Many here would respectfully disagree with you. We think there is a reason it won't work, and it's RG. Knowing what I know about the pp and business plan, I continue to hold. Duh. Now there's a beaut. "Knowing what you know..." Let's see; you know it's floorless, hence can be shorted into oblivion. You know we've all been lied to about the floorless aspect. You know that this CEO has NEVER produced a stream of revenue much less a profit in the past 8 to 10 years. You know that an entire management team of three very successful people, with very successful track records have all resigned. They have all resigned giving up zillions of options. They knew the innermost details surrounding these opportunities. They knew if and when these opportunities would be successful. Knowing all of this you can honestly say, “I see no reason why it won't”… develop revenues and profits. Essentially you know more than everyone that's been personally working with RG for the past 5 to 10 months. Right??? JJ, I know you're only kidding. Tell us all you're only kidding. C'mon, we'll keep a secret.In fact, if one buys the argument that the pp folks have diluted the stock and lowered it's price, which I do, then one should also realize that the price has been artificially deflated, so to speak. Artificially deflated? Artificially deflated??? My God man, do you know anything about market economics? We're headed in the direction of the true share value. And probably ONLY HEADED in that way. We probably aren't nearly there yet. Thus, anyone who argues that the pp has caused price deflation must also realize that it is a buy opportunity (considering price trends and other factors, obviously can't consider "earnings ratios", etc.). However, please don't construe my comments as a recommendation – many other factors would need to be considered. JJ, your last sentences are just too juicy for me to go to work on. Hopefully everyone who gets the gist of my points will construct their own retort. You really do provide some very good material with which to work. And what was that you were saying about ego? There you may have a valid point. And thee too should find thyself a good mirror.
JJ

SC