Well,
There are enough "Go TSIG" people on this thread without any need of input from me, but a remark is due, to assuage my own fears, if nothing else.
A reverse split - and that's an assumption at this point, but a likely scenario - can be viewed (at least) two ways: as a last ditch attempt to maintain credibility, say, maintaining a listing on an exchange; or, an aggressive maneuver to better one's position and esteem in the eye of both the investor and companies considering alliances with the RS-company as well as institutions willing to sink money into the RS-company, anticipating rosy days ahead.
Obviously, by reducing share count and thereby raising share price, the company undergoing the split undertakes a great risk, no doubt. Oh the stigma, oh, don't we all know some stories we'd rather not tell. And maybe a couple of stories we don't mind telling. I've got a couple of both.
"A reverse split is often a precursor to worse times ahead. If you get a notice that your stock is about to
have one, double check your reasons for owning it. If the story still sounds good, stay with it. But if you
don't see any improvement shortly after the split occurs, watch out."
Good advice. Death knell, or aggressive move? In this case, I'd say aggressive move, and a move apparently backed by an investment group willing to sink $40 million dollars into our company. Just think, TSIG has already survived the dreaded "death spiral", that misbegotten prior PP that nearly killed the company. Somehow, and don't ask me how, TSIG pulled itself from the gutter and made alliances with an internationally known company - Coca Cola - and has additional promotions with that pleased company, and has exclusively joined with United Cerebral Palsy, our nation's largest charity, to market items that will advance the UCP cause. Commendable on both counts, and some bemusement as to how they managed both.
When I ponder the reasons TSIG will (maybe, unless some arch-angel comes along) undergo a reverse split I ask myself, "a desperate move", or an aggressive "let's go for the glory" move? I rest with the latter. Yes, TSIG needs operating capital, but it has various alliances that are and will bring in money - enough to operate, I don't know - but I don't see us going out of business without the alliance with this investment firm. A well known NY venture capital firm making available $40 million could certainly help... a little advertising, an acquisition or two, and perhaps (perhaps) a listing on AMEX or NASDAQ somewhere down the road by reverse merger or meeting listing requirements, and a lot faster than at our current rate. Think about it, the MMs are going to, and have been, put up a heck of a fight before they let go of a company that trades several million shares a day. We ain't never getting off this OTCC board without taking matters into our own hands. And that is just what TSIG is doing, taking matters into its own hands.
Well, enough said, you know where my thoughts lie. I've double-checked my reasons for owning the company, and those reasons not only remain intact, but, and despite all the uncertainties, seem even more compelling than previously. Uncertainties abound in life, but ya' gotta' make a stand. At least for the moment, giving what I know, which is what you know, I'm still in the game. Not giving advice,, just offering an opinion, yada, yada...
Regards, Tim |
