To: johninc who wrote (44256 ) 12/30/2000 9:46:03 AM From: Suzanne Newsome Read Replies (2) | Respond to This is itan’s message from RB. My comments in bold.[Mailing to several hundred thousand schools at a $1 million expense resulted in several hundred school organizations signing up. You would probably agree with me that we can’t afford too much more of that.] 4H Clubs, [There were never any published results from the 4-H Club deal. My conclusion is that it was a flop.] Americas Atheletes with Disabilities, [a very small group that wasn’t going to make much difference one way or another.] Future Buisness Leaders of America, National Music Foundation [Organization discredited] United Cerebral Palsy [Once again, public declarations of a relationship never matured into a report of a successful deal or promotion. As far as I know, there is still talk of a "relationship", but it’s a bit unclear how it will lead to revenues and profits. How could the MusicCard be restructured to become a source of cash flow? Do not sell CD’s at a loss. Tie the use of the MusicCard to some other activity with a good profit margin. Let the corporation that distributes the card underwrite the cost of selling the CD’s in return for data on their customers.] [JK, I think the activities of the new corporation are going to primarily center on what Affinity has been doing all along. Part of the stockholders’ problem is that we don’t have a clear understanding of what Affinity does. They sell vacation packages to a group of people and attempt to sell these people add-on products. In the Pennzoil promotion, they will start with the information gathered when people sign up for sweepstakes, and attempt to guide these people to General Search and to sell them other products and services. Ztect can explain it better.] [The good news, JK, is that there does appear to be real synergy between TSIG, GeneralSearch, and Affinity. Each of the three adds to the pot and accentuates the other’s potential. More specifically, Affinity brings $25-30 million in revenue with good margins.] [I believe we can safely assume a negative EPS.] A Travel Marketing Group with Unknown begings and no history. [including IRS obligations.] [The $5,000 per month is "go away" money—cheap at twice the cost.] [Positioning the card as more of a corporate promotion is part of the process. But that leaves the problem of suffering a loss on the sale of certain CD’s. I think Roix is a good person to chew on that problem.] [Ditto] [His compensation package was not a good start. More about that later.] Please be Honest and FaithFull!! [a shrinking group] will rally behind him, but only while truthfull and sincere. [Thanks for your thoughtful comments. I do think the market is overlooking the fact that the new company has just added about $30 million of predictable revenue with good margins. Let’s hope that Roix can perform as well as BS.]
