Dear Doc Stone (Again)
Thank you for your responses to my apparently provocative posting this afternoon. If you don't mind, I will use this space to respond, in turn, to you, and then to the others who have commented. (Trying to post one of these things is a challenge just now.)
First, small fyi, the quarterly results are broken out at page 24 of the ammended S-1. Second, I have not sold share one as yet; I did have an order in yesterday morning, but it did not fill, and I have continued "considering" since. Third, in your comparative analysis of other net stocks, you have me at a disadvantage: I do not know too many of these companies as I have only been at this (internet securities) since becoming interested in DRIV, itself. Stated otherwise, my analysis is based on conventional valuation, which is probably archaic in this atmosphere, but lets me sleep at night. I will indeed look at WAVX, as well as any other examples you might be kind enough to suggest. I agree that there is a rapidly building level of interest in DRIV, and that they have continued to sign up good companies. More should be coming, and in Europe, as well, as you point out. All this being said, I remain concerned about the levels being approached by the indirect, TSQD, especially since the reverse split, which appears to have gone unnoticed. My intent had always been to make some money in the interim between the missed private placement in DRIV and its IPO, using TSQD, then selling out to switch to DRIV, direct, sometime around the IPO. In writing today, I was probing for your thoughts on this dilemma, if you wished to comment, because I value your opinion. Thanks, again, for your answer.
Your second message questioned the matter of the DRIV shares being passed along as a dividend to TSQD holders. I meant to say that I had developed my admittedly conservative relational model between TSQD and DRIV based on such a dividend (not that I hoped or even expected this to take place). To do this, I had to determine how many shares of DRIV would accrue to each share of TSQD at the time of distribution. I did not mean to suggest that officers would have to "cash in" their TSQD options. Rather, that they would want to exercise them in order to maximize their respective pro rata shares of the fixed number of DRIV shares (now, 3.2 million) to be distributed. If they failed to do so, they would receive a smaller total share of the DRIV distribution, unless it could be apportioned somehow to TSQD shares outstanding plus options outstanding at the time of the distribution. This would be a first for me as a construction, and is the more unlikely since Ronning/TSQD would incur substantial tax liabilities arising from the exercise of the underlying DRIV option by TSQD in preparing for the dividend. The TSQD option proceeds from the exercising insiders would provide the cash to satisfy this obligation. (I doubt that this is any clearer than my first effort, but the dividend is unlikely in any case, if all goes well otherwise.)
As to some of the other comments:
Ed Don has reason to be skeptical. In my short experience reading just a few threads, I have digested more drivel in terms of both hype and irrational criticism of companies than I could have imagined. I am not the person he is referring to and I have not yet sold a share of TSQD.
To Victor Danti: Yes, I may err if I sell now. If that is "another" mistake, I assume the first was in being late to the private placement. I tried hard when I learned of this thing, but I was too late.
To DeWAVE: If you will read the above, you will see that I have not sold as yet. Tomorrow is another day. The press releases I've seen relate to more clients signed up which will bring greater revenues/profits in future. My concern, again, is not the long-term for DRIV, but the escalating valuation of TSQD, given the recent results of DRIV and the nearness of the IPO. Should the DRIV share price not take off in the after-market as we would all like to see, this could really hit the TSQD shares hard and fast. I have no ability to predict internet IPO's, but I have a vested interest in trying to come out ok on this one, and am looking for all the help I can get.
David Browning |
