Interesting post from Hoffy on the Music thread...
To: Steve Antonelli (46 )
From: hoffy
Saturday, May 9 1998 11:55AM ET
Reply # of 47
I think TSIG is going to be a high flyer. Their New internet site will be up and running with a week or so. The
announcements alone of the site being active will mean great exposure and probably a big stock price
increase. Get in before it takes off: Here's a write-up on it and some comparisons to other companies.
With the recent acquisition of Compact Connection, Teleservices International Group (TSIG) has completely
overhauled its image and has entered the rapidly expanding internet market. We thought that with the changing
of this image that it was only fitting to start a brand new thread to reflect these changes. OUT WITH THE
OLD, IN WITH THE NEW!!!
Note: If you would like to browse the previous posts on the OLD site here's the link:
Subject 18466
CD Now, N2K, KTEL, and now BRAND NEW: Compact Connection and TSIG
Compact Connection is a wholly owned subsidiary of Teleservices International Group (TSIG)
New online CD sales : ccmusiccard.com
Company info and profile: stockprofiles.com
TELESERVICES INTERNATIONAL GROUP INC.
100 Second Avenue South
Suite 1000
St. Petersburg, FL 33701
(888) 883-TSIG
Fax (813) 897-4029
info@tsig.com
Shares Outstanding: 31,000,000
Publicly Held: 12,000,000
Insiders own 56% of total shares
Market Cap: $8.1 Million
Shares outstanding listed on December 10, 1997 on the last TSIG site were 24.3 Million.
Since TSIG's acquisition of Compact Connection was completed with just stock it looks to me as if they only
issued about another 6 million shares to do it. What a deal!!! At 27 cents/share that's $1.62 Million.
TSIG bought a company that is going to produce $35 million in revenues in '98 for only $1.6 million!
PR Firm
----------------------
VISTAQUEST, Inc.
A Financial Public Relations Company
Contact: Mark Kabash
380 Lexington Avenue, Ste. 1700
New York, NY 10168
Tel. (212) 551-7874
Fax. (212) 551-7837
Overview
Teleservices International Group Inc. ("TSIG") is an emerging independent provider of fully integrated global
Teleservices to companies focused on selling products and services through toll-free numbers and the
Internet. TSIG's wide array of teleservices include telephone sales/order capturing, customer service and
product support, assistance with billing and other inquiries, as well as direct response advertising.
TSIG's recent move into the music industry, with its acquisition of Compact Connection, Inc. (CCI), poises
TSIG to deliver significant revenue and earnings growth over the next three years. This will be made possible
with the company's enhanced call center computer telephony integration, expanding customer niches within
the travel and tourism industry, and additional strategic acquisitions
--------------------------------------------------------------------------------------------------------------
Compact Connection, Inc.
TSIG's recently completed 1998 purchase of Compact Connection, Inc.(CCI), an innovative direct music
wholesale supplier of compact disks and cassettes, is fully integrated into all aspects of TSIG's existing
teleservices operation. This new acquisition provides TSIG with unprecedented growth potential within the
booming $35 billion global music market.
CCI's unique marketing format incorporates the sale of a music card that allows its purchaser the ability to
buy a specific number of compact disks or cassettes from over 200,000 titles, including the music industry's
latest top releases, at a "rock bottom" retail prices, undercutting all competitors. Even when adding minimal
shipping and handling charges, the total CCI price is lower than any of its competitors. Purchases are sent via
mail . CCI music cards can be purchased from authorized CCI distributors, directly from the CCI Internet
website or by calling a toll free number. CCI's music category offerings include: Christian, Classical, Country,
Dance/Rave, Jazz, Rap and Rock.
CCI provides its customers with the finest and highest quality music recordings sold in the United States. By
combining nationally known recording labels along with selected wholesalers and one stops, CCI is able to
offer virtually any published title/ label. The Company is a master broker for: Arista, Atlantic, BMG, Capital,
CBS, Columbia, EPIC, Geffen, Island, London, MCA, Mercury, Motown, Polygram, Rodell, RCA, Telarc,
Virgin Record and Warner Bros. Companies.
The CCI music card will be supported with an upbeat, aggressive, national marketing campaign that will utilize
cable television, print, the Internet (Search Engines), radio, and direct mail in the marketing mix.
--------------------------------------------------------------------------------------------------------------
Compact Connection (TSIG) has been selected as a "featured company" for the nationally broadcast
television program entitled "Emerging Public Companies - The Story Behind the Symbol", which will be
carried to 65 percent of the top 215 Designated Market Areas in the United States. It is scheduled to air
during the second quarter of this year.
--------------------------------------------------------------------------------------------------------------
Click here to read an interview with Darrell Piercy, chief executive officer of Compact Connection.
stockprofiles.com
=======================================================
Some comparisons between Compact Connection (TSIG), N2K, and CDNW
KTEL was left out because I can't find any predictions on it and it doesn't accurately reflect my
"out-of-whack" valuation comparisons.
Compact Connection :
------------------------------------
Shares Outstanding: 31 Million
Share price: $0.27
Market cap: $8.37 Million
'97 Revenues: $11 Million
'98 Revenues (Projected):$35 M
Earnings '97: $800 Thousand
-Per share: N/A
Projected '98: $3.5 Million
-Per share: $0.11
Customer Base: 1.5 Million
Multiple of '97 Rev: 0.76 Times
Multiple of '98 Rev: 0.24 Times
Est. First Profitable Year: Now
N2K (NTKI):
------------------------------------
Shares Outstanding: 14.2 Million
Share price: $25.125
Market cap: $357 Million
'97 Revenues: $11.3 Million
'98 Revenues (Projected): $58 Million
Losses '97: ($28.7) Million
-Per share: ($5.88)
Projected '98: ($44.6) Million
-Per share: ($3.95)
Customer Base: 300-400,000
Multiple of '97 Rev: 31.6 Times
Multiple of '98 Rev: 6.2 Times
Est. First Profitable Year: 2000
CD Now (CDNW):
----------------------------------
Shares Outstanding: 15.5 Million
Share price: $32.00
Market cap: $496 Million
'97 Revenues: $17.4 Million
'98 Revenues (Projected): $60 Million
Loss '97: ($10.7 M)
-Per share: ($0.91)
Projected '98: ($26.9 M)
-Per share: ($0.91)
Customer Base: 435,000
Multiple of '97 Rev: 28.50 Times
Multiple of '98 Rev: 8.27 Times
Est. First Profitable Year: 2000
Note: This comparison assumes at least break-even profits this year for the regular operations of Teleservices
International Group (TSIG), independent of Compact Connection's operations. Teleservices' other
operations are projected to be profitable by the second quarter of '98.
|
