To: Suzanne Newsome who wrote (31930 ) 6/29/1999 10:49:00 PM From: Tom Read Replies (5) | Respond to of 44908
Although I have grudgingly grown to respect Zeev and Ditch a bit more (due to apparent accuracy of their predictions), I also still wonder if there could be a brighter scenario for the share price of TSIG. There are many unknowns. We do not know how many, if any, of the pp holders are friendly. We don't know how many have converted already, and we do not know how many are currently holding, if they have converted. We know that there is a 3 million dollar floorless. Let's ignore Bernie's comments, which may or may not be accurate. Let's just say that "some" pp holders converted and sold, and some shorted. This, combined with shareholder selling, accounted for the drop in share price. If I was a pp holder, what would I have done? If I was approaching it from a purely business perspective, I'd take advantage of the "transitional" fact of TSIGs business, the uncertainty on SI & RB, and short the heck out of the stock. It would be just too easy to make money in the short term. Makes sense. The contract says I can do it, right? However, would I go into subpennies? Or, would it make more "business" sense to make some money off the short, convert into the maximum amount (and hold) without actually killing the company, and then sit and watch everybody clamor for shares when the selling pressure stops and the good news starts? Look at the timing on this. Myphotocard site comes up, with a likely PR which has an "affiliation" of sorts with Kodak. Nettaxi starts. Signature starts (hopefully). Distributorships start moving forward. Golin Harris, who has been very quiet, starts talking. Revenues are close at hand, hopefully. Let's say that there were enough early conversions in the 30s, then all the way down to 4 cents, which when combined, have already covered the 3 million bucks. The pp holders, who have not sold, are sitting on 10s of millions of shares, with profits locked in already from the shorting. What do they want now? They want the price to go up. Way up. Back up to 50 cents and beyond. Wouldn't they like that? Now, I understand that there are those who would attack this theory based upon a lack of belief in the business model, or execution, by TSIG. However, the pp holders may be closer to understanding the possibility of TSIGs success than we are. Comments? Tom