To: Ellen who wrote (31381 ) 6/16/1999 11:01:00 PM From: Suzanne Newsome Read Replies (7) | Respond to of 44908
I received a PM after I posted my report on my conversation with Bernie Deutsch saying that I was being used by the company to spread unrealistically positive information about the company's future. This person went on to say that I could be investigated by the SEC. So, let me get this straight. I could do what other people on this thread have done and call management liars, deliberately "misunderstand" (again and again) a critical point about the 10KSB, hammer on the same point post after post after post after post, use profanity and foul language, post personal insults to other posters and management, repeat endlessly a small problem I had with the company, and nothing happens! But by posting a message in which I name my source, state his involvement with the company, point out why his information may be prejudiced, write in great detail the extremely negative things he said, report in a flat factual manner some positive developments, and print in bold type a warning that TSIG is a very high risk stock, this will get me investigated by a powerful regulatory agency of the United States government? Or maybe someone is trying to intimidate me. So for those who are unable to do this for themselves, here is a critical evaluation of the information from Bernie. "Bernie expects TSIG to sell 10 distributorships soon at $25,000 each (on average) for a total of $250,000." Someone posted that Paul Henry (Yale '69) believes 6-7 are ready to sign, but is waiting on the checks. I'll state that 6-10 distributors may be close to signing. "TEMPO believes it can produce 100 million CD's. At 10 cents apiece, that is $10,000,000 of revenue to TSIG. Negotiations are in progress with McDonald's to create a CD for them." I assume the questions here are "Can TEMPO really produce 100 million CD's" and "Is there really a deal with McDonald's in the works?" I do not know. Paul Henry said there were some "interesting" new deals in the pipeline from TEMPO that may bring in revenue as early as August. I suspect that TEMPO itself can't prove how many CD's will be produced. If anyone thinks 100 million is too high, reduce it by 20%, 30%, or 50%. McDonald's? I believe anybody who has hung around this thread any time at all takes any such mention of a company with a grain of salt, i.e. don't bank on it until it's announced by the company. "Negotiations" is a "fur piece" from a PR. Bernie did not give gross profit figures, only hourly figures, on Signature. The PR announcing the Signature deal said it was a $30 million deal. It has been widely and repeatedly reported on this thread that the profit margin is 25%. Do Bernie's numbers come in higher or lower? It depends on the assumptions made about hours per day, days per month, and the number of operators. Make whatever assumptions you think are realistic and compare the result to 25% x $30,000,000. Then take in account the ramp up factor. Bernie said 5 more banks ready to start; Paul Henry said today 3 more banks are ready to start. As for Lifetime Learning, I referred to my previous post that analyzed revenues using very conservative assumptions and average assumptions. Choose either number you like or one in between. Every investment requires one to make predictions about the future. TSIG has no history on which to base predictions. There is no history of Lifetime Learning, NetTaxi, TEMPO, FBLA, volleyball, or Signature. This means predictions are even more likely to be wrong. That does not eliminate the need to make predictions. Regards, Suzanne