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

To: Copeland who wrote (415)	5/12/1998 11:44:00 AM
From: Redman	Read Replies (1) \| Respond to of 44908

It could be, Yahoo also does K-tel. These guys may not be signing exclusive sector agreements. green

To: Copeland who wrote (415)	5/12/1998 12:05:00 PM
From: Juan Dominguez	Read Replies (2) \| Respond to of 44908

TO all newbies and investors considering buying TSIG stock: Here is an excerpt from an interview with the Compact Connection CEO a few weeks ago. This is all you really need to know: VistaQuest Will you maintain your 10% bottom line? Darrell Piercy It will probably be a little higher this year. Through our distributors, we only receive about $2 per card. By selling direct, we're getting $10. Obviously, there are some new things we have to pay out of that, but the net profit on the cards will probably be $6-$7. VistaQuest One million new buyers equals $20 million in revenues, $7 million to the bottom line. And you believe you can sign up 5 million new customers and generate $100 million in revenues per year - is this correct? Darrell Piercy Yes, We plan to be generating revenues at the rate of $100 million per year within 18 months. So, according to the CEO : (in thousands) 1998 1999 Revenues 35,000 100,000 Net income 10,000 35,000 EPS $.24 $.85 Gross profit margins are based on average $6-7 gross profit per $10/card sold----significantly higher than than $2 gross profit per $10/card the company has historically earned because of their reliance on a "middle man", the distributor. Now that they have the telephone capability that Teleservices International offers them, they can now sell the music cards DIRECT TO THE CONSUMER, thereby saving $5-6/per card. Even if we assume $2m in advertisiing expenses in 1998 and $5M in 1999 as the CEO stated, we still have a very profitable company. IMHO, this unique marketing idea is much more profitable than the marketing ploys, KTEL, CDnow and n2K have. It is also a much more appealing way of buying CDs because they CDs are bought a wholesale prices averaging $4-6 less than the price its competitors charges for the CD titles.