Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Suzanne Newsome who wrote (33045)	7/29/1999 11:06:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 44908

Suzanne, count the money, you know the burn rate, you know that the original line of "credit" was some $10 MM, you know how much was used and more or less how much more need to be used, and as far as I can see, unless there is another source of money to support operations, it has to come from the leaky floorless. Add to the normal burn rate the funds needed to launch musicard (we know of $700 K for LL, and who knows how much for the outreach program if it ever takes off, and the training of personnel to man the call centers), and I would not be surprised that there is a lot more of the toxic stuff. The fact that the share count is not going up means that very little additional conversion is taking place. I would not be surprised to see, once the numbers are posted that a big chunk of the recent 22 MM shares additions is 7 MM to to Gordon and 15 MM in exercised options sold into the market (after repricing as was done last time around?), and no conversion. They never told us before what kind of shenanigan they do with the shares and until I see evidence that Gordon has changed his habits, I will have to assume he has not. Remember that the bandits do not make very big money on conversion (just 30%) they make big money on shorting at $.1 covering at $.04, and repeating this game few times until they chose their next target like $.02 and so on. Until you have a floor, they are going to play the same game, after all, they do that without any risk to themselves, they are fully hedged. Zeev

To: Suzanne Newsome who wrote (33045)	7/30/1999 9:02:00 AM
From: Zeev Hed	Respond to of 44908

Suzanne, I may have erred in the size of the leaky debenture, looking back at the SEC document, I see a total of about $5 MM rather than $10 MM as stated in my prior post. As of May about $2 MM of that debt was outstanding and nor converted and about $2.8 MM was still available (under "certain conditions"). The burn rate is about $1.5 MM per quarter, and since they had essentially no cash on the balance sheet, they must have accessed in the last quarter some of this $2.8 MM, and will have to find additional funding in the current quarter if their burn rate stays at $1.5 MM. Mind you, in March they issued an additional 7.5 MM options and registered these. I do not know if these were subsequently exercised or not, but if conversion has occurred it must have been only related to the outstanding $2 MM or so at the end of May, not the additional, at least $1.5 MM of the past quarter and an additional $1.5 MM for the current quarter. This is ample ammunition for the bandits to wreck havoc with the stock (even at $.10 this gives them "shorting power" of 15 to 30 MM shares, and at $.04 two and half time that much. These are rough numbers as I see it, and thus the mumbling about the conversion being over, might possibly be right as far as the outstanding debt as of May, but IMHO, surely the new debt the company is incurring as long as it operates on a negative cash flow basis. I hope that helps clarify the situation. Zeev