To: Suzanne Newsome who wrote (39906 ) 3/3/2000 10:49:00 AM From: Suzanne Newsome Respond to of 44908
From my new best friend on RB, SRX7: << Conspiracy? Probably not. But considering the record of this management, why is everyone ignoring the continuing lack of communication of real numbers from TSIG.>> Not a bad question, Jim. Let's chew on that one a bit. What are the possibilities? 1) The numbers from the 4th quarter are abysmal showing no revenues. Management doesn't want the news out until it's absolutely unavoidable. Practically none of the Lifetime Learning schools actually held a fundraiser. 4H and FBLA never showed up. Bald Eagle, who predicted revenues of $69,000, was high. Comment: I believe that there were LL fundraisers. And why wouldn't 4H and FBLA participate at some level? 4H was considered a big deal when it was announced. It was during the 4th quarter that the Coke and UCP deals were being developed. If LL, 4H, and FBLA were falling flat on their faces, why would Coke and UCP be willing to sign on? It makes more sense that Coke and UCP saw something good happening. 2) Revenues from the 4th quarter came in on the high side of estimates, that one being $800,000 by wjmt. Comment: Warren is fairly tuned in so I am disinclined to ignore his estimate. He suggested $100,000 for the non-LL deals and $700,000 for the LL deal. His non-LL estimate seems very conservative to me. If memory serves, there are 6 million 4H members. If 300 schools participate and do $2300, that's $700,000 of LL revenue. Once again, those are very conservative assumptions. Let's guess what is going to happen over the next 30 days. The $40 million financing/share reduction has already been announced. Speculation is that there are multiple PR's coming out with very good news. I predict that all of the super great PR's are announced after the bell giving the long-term investors equal footing with the daytraders who sit at their computers all day. The stock price climbs to $1.25 before the meeting on Mon., Mar. 27. A 1-for-4 reverse split is announced at the meeting. At the meeting or shortly thereafter, a PR with really good news comes out when the market is closed. Anybody who sold before the meeting is left out in the cold. The price rises above $5.00. On Fri., Mar. 31, the 10KSB is filed on time. The revenues come in around $800,000--a good sign--and due to "Subsequent Events" (Coke, UCP, $40 million financing) the auditor's cautionary statement does not appear on the 10KSB. No longer will we read, "we can give no assurance that this company can continue as an ongoing concern." Then we wait for NASDAQ qualification. Jim, to cut to the chase, the company is being close-mouthed because it's either good news or it's bad news. With all that is happening and is rumored to be happening, it's not going to matter. Fourth quarter results will be lost in the shouting and excitement. Regards, Suzanne