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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme -- Ignore unavailable to you. Want to Upgrade?

To: P.E. Allen who wrote (6287)	7/1/1998 9:11:00 PM
From: Logistics	Read Replies (2) \| Respond to of 8798

TSIG TSIG and why - Informative reward vs. risk post from the thread: Jeff, I've never been one to bury my head in the sand. If you'll take the time, I'll gladly read the details of your due diligence that you alluded to in your last post. Let's get it over with! I commend you on your ability to dig up and analyze facts about the company. They have raised substantial questions both here on the message board and inside of TSIG. In the short term, this sucks! In the long term, it's probably healthy for all concerned. I am still quite long on TSIG and talk with independent sources and company representatives several times each week. As I mentioned earlier, one of my investor friends from California recently visited TSIG and Hastings for extended discussions (he was extremely skeptical when he left, I wasn't sure if he was going to recommend buying or selling) but ended up substantially increasing his position after his visits with Robert Gordon, Lou Adreana, and staff members of both companies. One thing that he confirmed from my due diligence is that the new management team and the employees he met at TSIG are good people. Not just extremely competent, but good people. He stressed this to me so I will stress it here. The new management, fortunately, enjoys a challenge and they have one in TSIG. I believe they are ethical. I know they are concerned about maintaining their excellent reputations. In spite of the ongoing financing difficulties, this team is staying together and forging ahead. They see huge potential, as do I. I visit a beta test site for their web page almost daily. Refinements have been made at a rapid pace. You can now easily look up artists, get a list of their music, bring up their albums, play selected sound clips, etc. In talking with Darrell Piercy, he was excited about the print advertising that will be coming out soon. Also, he mentioned a very interesting piece of data. Our fulfillment center, Valley Media, has tons of data based on serving their other clients (I think most of the big names use them CDNow, N2K etc.). Only about 20% of what they ship are new releases. About 80% of what they ship turns out to be the much higher profit margin older music. New clients have been brought into the teleservices business (not fortune 100 companies, yet - but we can expect those in the future now that TSIG has upgraded their hardware and software ($2M upgrade) to be playing on the same field as even the largest teleservice centers) They have also been able to keep some business that they thought they were going to lose. The attorneys are fighting the lawsuits now (two months ago, essentially nothing was being done about them) and results are expected to be significantly better than the worst case scenarios outlined in the SEC documents. As has been pretty well figured out here, Gordon is doing pretty much everything he can to keep the company funded until they make it through these hard times. He appears to have excellent resources and contacts, and he is sticking his neck out farther than any of us. And he will profit from this. Bottom line: It's a good bet. Nobody knows for sure. I always think in probabilities. My guess now is an 80% chance for success and a 20% chance for failure. What makes TSIG unusual, is that success should be at least a ten bagger. On average, if I take the TSIG bet, 20% of the time I lose my quarter. But 80% of the time I get my quarter back along with 9 additional quarters to go with it. Mister Ex