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

To: Suzanne Newsome who wrote (33342)	8/8/1999 10:19:00 AM
From: Zeev Hed	Read Replies (2) \| Respond to of 44908

Suzanne, to get a "reality check" on this business, it would be appropriate to find what is the total amount of charitable funds raised by all schools in the US, then find what is the current "competitive position" of various fund raising methods and then try and guesstimate how long it will take TSIG to capture let say 1% of this market. I would guess that there are hundreds if not more, organizations providing "goods" that are used in charitable fund raising in schools, thus 1% would be quite a penetration rate in let say two years from the first entry (next Autumn?). Then of course, you'll have to see what are the real costs of such penetration (people calling on the phone, mailing material and mailing costs, support for a distributor organization, overhead, etc.). I think you will find that like many businesses, if they bring 10% of sales to the bottom line before taxes, they will be doing very well. You also must consider the working capital required, I maintain that no school is going to prepay for musiccards or any "charitable goods", so either the kids must be equipped with literature and brochures to pre sell (as you mentioned with selling of various periodicals for charitable purposes), which is a non trivial cost, or, if the cards are sold on the spot, major accounts receivable must be provided for. Financing $10 MM in sales (not profits) would typically require an addition of $3 MM to working capital. If you believe Gordon and $10 MM are going to be profits, you'll have to assume $100 MM in sales and an additional $30 MM in working capital. I see no signs that Gordon is raising $30 MM, thus I have great difficulties believing his $10 MM in profits in the fourth quarter. I have greater difficulties believing that he does not know these simple facts of running a business, and I am therefore forced to come to the conclusion that he continues and exploit people like REW and others on the threads by quoting such numbers, clearly knowing there is no way he can achieve these. He is circumventing the SEC requirement that any information from the company be factual and well rooted in facts and uses these people to simply hype the stock. This man has done that in the past why would you want to think he'll not continue with the same schemes that have been very profitable for him personally, in the future. Just look at the numbers, act as if it was your own business plan and try and see what level of funding is required to get profits of $10 MM by the last quarter of this year, you will see that the level of funding contemplated is far from being adequate to achieve what he tells you he will achieve. You should also contemplate the issue of seasonality of the "charitable selling" business and the need to maintain the organization through lulls in charitable activities, meaning that if at all the "plan" is executable, the meager profits generated in the few active months will be mostly "eaten away" in the lean months. Zeev