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

To: gambler who wrote (1364)	6/19/1998 1:26:00 AM
From: neverenough	Respond to of 44908

My only concern right now is to see the CCI site up and running. Once this happens I will feel much more at ease. Good luck with your CC and BTW I sure hope that you don't quote Gordon Geco while talking to Mr. Gordon. Nigel

To: gambler who wrote (1364)	6/19/1998 1:48:00 AM
From: Martin E. Frankel	Respond to of 44908

Gambler, Just thought you and the other TSIG thread members would be interested in reading the following regarding penny stocks (or BB MMs... if it makes you feel better) taken from another thread. Read the third from the bottom paragraph a couple of times. Sound familiar!! Don't get demoralized!!! Marty P.S.: Sorry this post looks so "chopped-up", but that's how it copied. But, IMHO, it's worth reading... probably a few times. ______________________________________________________________________ <<The following is an excellent article on MM's and how they work: From NASDAQ BB ALERT "Below is an essential guide to understanding Market makers on the Nasdaq market as pertaining to all good and bad stocks and an explanation as to how a MM NEVER QUITS SHORTING A STOCK. MM GAMES Ways of a MM (Market Maker) I was a OTC MM for about 10 years ending in the late 80's. Since then I have been strictly an investor. Since I have not been that up to date in MM rules I will only make statements that I feel fairly confident are still accurate regarding these activities. By and large most MM don't have a clue nor do they care to learn, about the fundamentals of the stocks they trade. They just try to make orderly markets. When dealing with BB stocks it is very easy for a MM to get trapped into being short in dealing in a fast moving market. Reason being; most of the MM's in this stock are what are called "wholesalers" this means they don't have retail brokers "working" the stocks. So they have to rely on whats know as the "call" from larger retail houses. If a "Big" retail firm like an E-trade calls up a market maker to purchase say 5,000 shares of a stock, they expect to get an "execution" from that market maker. If he turns them down, or only gives a partial then the "Big" firm will go to another MM. If this second MM "fills the order" then that "Big" firm has a moral obligation to continue to give future "business" in that stock to tha MM who preformed (his life blood). This will go on until he "fails" to perform and so on. Contrary to popular opinion the "Big" firms Do NOT neccessarly go to the "Low Offer" to fill a buy order (Or high bid for a sell). The "Go" to who they think will perform to fill the order and expect that MM to "match" the "low offer" in the case of a buy (bid in the case of a sell). Even though this MM might in fact be the "high bid" and not really want to sell any more. As a wholsaler he must perform or he will get a reputation as a "non-performer" with the "Big" houses and will cease getting "calls" which means he will soon go out of business. I mentioned above that this activity is very significant to BB stocks. I say this because most of the trades in these BB stocks are "unsolicited" and are done through discount houses, ergo "Big" firms. With the above groundwork layed, let me try to explain how market makers get short even if they like the Company; Lets say that a stock (shell) has been lying quitely at $.25 bid $.50 offered. A limit order comes into one of the MM's to Buy at $.50 for a thousand shares. Prior to this trade that MM may be "flat" (neither long or short any shares). He fill the order and is now short 1,000 shares. He may raise his bid hoping to find a seller to "flatten" out his position. But before he realizes it a wave of buyers have come in and cleared out all the $.50 offers. Now the stock is $.50 bid .75 offered. Here comes that "Big" firm he just sold the 1,000 shares to at .50 with another bid for 1000 at .75. He makes this print. Now he is short 2,000 at an average of .625. The market keeps moving and now its .75 bid 1.00 offered. Now he has to make a decision. Just like investors, MM Hate to take a loss. So 9 times out of 10 he will now sell 2000 at 1.00 making him short 4000 but with an average .81. At this time he would love to see a seller at .75 so he can cover his short and make a few bucks. But instead the market keeps moving up. Now it is 1.00 to 1.25 and here comes the buyer again at 1.25. He doesn't want to loose the call so now he needs to sell 4,000 at 1.25 to keep his break even point above the bid. Now he is short 8,000. Market moves up to 1.25 bid 1.50 offer here comes the buyer now he feels he must sell 8000 here because "stocks don't go up forever". Now he is short 16,000. And so on and so on. If the stock keeps moving up, before he realizes it he could be short 50k or 100k shares (depending how big his bank is). Finally the market closes for the day and on paper he may look allright in that his "break even" price may be around the closing price. But now he has to figure out how to entice sellers so he can cover this short. It is important to note that if this happened to one MM it has probably happened to most all of them. Some ways MM's entice sellers; Run the stock up with a "tight spead" in a fast market, then "open" up the spread to slow down the buying interest. After it has "cooled off" for a little while ower the offer below th last trade right after a small piece trades on the offer then tighten the spread so that the sellers feel they can take a "quick profit" by "hitting the bid" on the tight spread. Once the selling starts the MM's will walk it down quickly by only making small prints on the way down with the tight spread. Another way is by running the stock up in the morning, averaging up their short then use the above technique to walk it down in the afternoon. Hopefully after doing this for several days, it will demoralize the buyers. The volume will dry up and the sellers will materialize thinking that the game is over. Contrary to popular opinion, MM usually Do Not Cover in Fast moving markets either Up or Down if they are short. They Short More. They usually try to cover after the frenzy is out of the market. There are many other techniques they use but the above are the most popular. This technique works about 9 times out of 10 particulary in a BB market. However that is because 9 out of 10 BB stocks are BS. Remember what I said above. Most MM's don't have a clue as to the value of a Company until they get trapped. If the Company has solid fundementals and a bright future. Then the stock will do very well. And the activity that caused the situation will prove to even help the future stock activity because it created an audience.">>

To: gambler who wrote (1364)	6/19/1998 1:52:00 AM
From: Martin E. Frankel	Read Replies (2) \| Respond to of 44908

Gambler, This is the 3rd from the bottom paragraph referred to in my last post: << Another way is by running the stock up in the morning, averaging up their short then use the above technique to walk it down in the afternoon. Hopefully after doing this for several days, it will demoralize the buyers. The volume will dry up and the sellers will materialize thinking that the game is over. >> Marty

To: gambler who wrote (1364)	6/19/1998 10:09:00 PM
From: JEFF BERRY	Read Replies (1) \| Respond to of 44908

Gambler, Here is a question for the conference call: "Where did the money come from? Also, explain the wisdom behind the timing of the expenditure?" We all know that TSIG is in the midst of a major cash crisis. As of 3/31/98 accounts payable including substantial obligations to the IRS for failure to pay payroll witholding taxes totalled a staggering 7 number fiqure. Available cash on hand only 82k....1st qtr. operations based on the 10Q indicate that the company is continuing to consume cash due to losses at the rate of $150k per week just to keep the doors open and sustain basic operations. In the midst of this cash crisis environment TSIG entered into an agreement to provide $2,250,000 in cash to CCI. Based on the interview with Darrell Piercy CEO of CCI with Vista Quest it is apparent that CCI will need this cash since the advertising budget for 98 has been established at $2,000,000. On May 1st Robert Myers and Tom ? interviewed Mr. Piercy and posted the highlights of the interview on S.I. (post # 619) In the interview Mr. Piercy stated "I also will recieve a significant advertising budget for the promotion of CCI". It is apparent from this interview that these budgeted funds while expected by Mr.Piercy were not yet recieved as of the interview. On 6/4 Gambler and Beebs interviewed Mr Gordon CEO of TSIG and posted the results of that interview on S.I. (post # 1015) During the interview Mr Gordon stated that the $2,250,000 obligation to CCI had already been paid. During the same interview Mr. Gordon also stated that the somewhat controversial loan of $5 million that he had agreed to make available to TSIG was not going to be needed by TSIG due to the anticipated raising of capital through the completion of a Private Placement of company stock sometime in mid-July. In view of Mr. Gordon's statements it is apparent that at the time of the interview Mr. Gordon had not advanced any money to TSIG against the 5 mil. note. It is also apparent that at the time of the interview TSIG had not yet recieved any funds from the private placement that they were still working on. Mr Gordon stated that an immediate priority of the P.P. funds would be to pay off the IRS obligations that were still open at the time of the interview. In light of the foregoing and in order to reconcile the statements of both Mr. Piercy and Mr. Gordon we must conclude that TSIG paid $2,250,000 to CCI sometime between 5/15 and 6/4. Where did the cash come from to make this payment? If the cash truly was available why would such a payment be made at the expense of postponing the crucial IRS obligations? Obligations that could result in closure of the company if left unchecked. Why would such a payment be made when CCI had yet to fulfill its obligation to provide audited financials for TSIG's approval? Why would such a payment be made between 5/15 and 6/4 when the funds were not yet crucially needed by CCI due to the delay of the web site launch? From 4/1 thru 7/15 the date of the hoped for completion of the P.P. TSIG requires more then 1.5 million of cash just to sustain basic daily operations and this is without reducing payables at all. In view of such a real cash crisis and in light of the foregoing ask Mr. Gordon to please explain the wisdom behind making the $2,250,000 payment to CCI during the 5/15 - 6/4 period as opposed to waiting until after the P.P. was completed or at the very least until advertising expenditures were needed? Respectfully, JAB

To: gambler who wrote (1364)	6/20/1998 2:48:00 AM
From: Simo.com	Respond to of 44908

Conference call question: First of all, I would like to thank you, Beeb ,Marty , and the rest for all the good DD you have been doing since you started the thread. I have been lurking for couple months, all the way from the desert of Saudi Arabia. I am very long on TSIG. I am also looking forward to attend the Vegas party, whenever that is. I have been loading up on this stock for a while. How about asking mr. Gordon about the latest figure on the outstanding share count & and also how about introducing the CC card in the military exchanges ? Just talking to the boys here, I think it can be a good hit.

To: gambler who wrote (1364)	6/22/1998 1:28:00 AM
From: JEFF BERRY	Read Replies (2) \| Respond to of 44908

Gambler, Additional questions for the C.C.: " How will TSIG overcome the tremendous obstacles standing in the way of profitability for it's teleservices business?" A) In a press release of 2/9/98 TSIG touts Harley Davidson as one of it's clients. We are aware however that on 2/19/98 Harley Davidson filed suit against TSIG seeking judgement for termination of it's contract with TSIG as well as seeking judgement for unspecified damages. We also know that on 4/1/98 Harley Davidson was awarded a default judgement against TSIG leading us to believe that their allegations were true.Additionally we are aware that a hearing date was set by the court for June 12th on the possible awarding of damages in favor of Harley Davidson against TSIG. 1)What was the nature of the dispute and why was Harley Davidson dissatisfied with TSIG's call management services? 2)What damages does Harley Davidson contend was done to it by virtue of entrusting TSIG to handle call related services in it's behalf? 3)What was the result of the June 12th damage hearing? B)We are also aware that on 3/12/98 Call Management systems inc. filed suit against TSIG alledging "breach of contract" relating to call management services provided by TSIG. Additionally on 3/17/98 Valley Forge convention & visitors bureau filed suit against TSIG alledging "breach of contract" related to call management services as well. 1)What is the specific nature of their complaints against TSIG's call center operations? 2)Has there been any update to the legal status of these suits? 3)Can we assume that both of these companies are no longer TSIG clients? C)In the 10Q filed by TSIG for the 1st qtr. of 98 it states that in addition to the 7 itemized lawsuits contained in the report as well as a number of smaller non-itemized litigation matters that there were also "threatened litigation matters relating to non-performance of contracts and non-payment of various obligations. 1)Have there been any additional suits filed against TSIG since the release of the 1st qtr.10q? If so please elaborate. 2)Do any of the "threaten litigation" matters relate to call center operations? D)We are aware that TSIG's revenues for the 1st qtr of 98 fell 41% compared to 1st qtr. 97 revenues. This is of serious concern especially in view of the recent lawsuits filed by TSIG clients who claim breach of contract and seek substantial damages against TSIG related to its call center operations. When we consider the drop of revenue in light of the recent litigation it seems apparent that TSIG is losing existing customers at a rate substantially greater then they are replacing them with new ones. Since the 1st qtr. we have recieved news of only one new customer....Recovery Network. However we have recieved numerous assurances that TSIG will soon be landing major clients including those of the Fortune 500....Please tell us: 1)The expected annual revenues of the Recovery Network contract as well as the anticipated earnings impact. 2)Since we only recieve news of new contracts and new customers through Press Releases please inform us of any other customers who have since 1/1/98 terminated or ceased to use TSIG call management services. 3)In view of the fact that most large companies and especially those of the Fortune 500 are known to conduct extensive research on all potential vendors and even more so on vendors that will be representing them to the public,how does TSIG plan on overcoming: a)The percieved impact of the litigation against it relating to its failure to perform under its contracted obligations wherein respected companies such as Harley Davidson and others have alledged that they have been seriously damaged by virtue of their decision to allow TSIG to handle its call services operations? b)Since it is likely that new potential clients will seek out these companies of legal record to discuss first hand the experience they have had with TSIG that lead to their filing litigation, what kind of reference can we expected them to provide? How will you overcome the likelihood of a bad recommendation? c)In view of the serious cash flow problems that TSIG is experiencing that have resulted in default of many of its payment obligations as well as substantial obligation to the IRS for failure to pay Federal witholding and other payroll taxes, all of which are a matter of public record well within the reach and no doubt will be discovered by by any major potential client. Why would a large successful company with so much at stake choose TSIG to handle its call management....a service that has a direct reflection on on the reputation of its company when there are so many other well established,respected call center companies who are well managed,capitalized and referenced? d)Additionally, litigation was filed against TSIG on 4/10/98 by Siemens Business Communication Systems Inc. Wherein Siemens is requesting the court for judgement against TSIG including among other things, granting Siemens petition for repossesion of communications equipment that it had sold to TSIG. Equipment that TSIG has alledgedly failed to pay for as agreed by contract. The implication of this suit will likely cause any company considering entrusting TSIG with its call management services to take a step back. They might likely conclude that siezure of TSIG's telecommunications equipment might severely hamper its call center operations. Or at the very least a dispute with Siemens or any other telecommunications vendors could result in delays or refusal of needed equipment service.....How does TSIG plan on overcoming these obstacles of concern? When we view the foregoing in the light of the reality of declining revenues,lawsuits,lost customers,ect. combined with the lack of announcements of any new major customers, we are skeptical that TSIG will suddenly be able to overcome these seemingly insurmountable odds and achieve profitability in its teleservices business in 1998 as so many of us on the S.I. thread are being lead to believe. Please explain why such skepticism is ill-founded and why we should have confidence in the profitability of TSIG's call center operations for 1998? Please assure us why we should trust what TSIG "says" will happen when our own experience with TSIG's past promises (Dates for web site completion,CCI launch,date for emerging companies TV broadcast ect.) have proven to be disappointing...and when it is also apparent that TSIG has failed to honor many of the commitments that they were willing to put in "writing". Respectfully, JAB