repost from Raging Bull... Steve I hope you don't mind...
By: poisontaster
Reply To #1007 by NavyBlue Sunday, 16 Aug 1998 , 10:44 PM EDT
Post # of 1017
Dear NavyBlue,
You undoubtedly know that you are entitled to your questions and your opinions. Moreover, I think you are also entitled to an agenda. Nothing wrong with that.
Let me see if I can address some of the issues you brought up:
Alyce Cucurullo has been serving as a consultant for TSIG since April 30, 1998. She has since assumed the role of Chief Operating Officer some time since the management reorganization. It has been made abundantly clear that Alyce Cucurullo did not work out as a COO and Gordon has made a statement that she will be assuming her previous consulting role. In the CC, Gordon has mentioned her accomplishments since her role.
OK, NavyBlue, she's leaving. I personally don't think that Alyce Cucurullo and the position (COO) is irreplacable. She didn't work out. What do you exactly see as her unique, critical irreplaceable, do-or-die quality. What is it that make her departure/replacement so out of ordinary? Is it because you think that Paul Henry won't be able to handle operations without her? Or is it because you think Catherine Krell won't be able to effectively strategize a realistic and reasonable marketing campaign and have to "resort to boyscouts" without Alyce? Or is it you think that Tim Heideman cannot find his way around the call center operations without Alyce? Or is it because you think that Gordon is feebled minded and Alyce is actually the mastermind of the entire company? Which is it?
About the delay of the website -- yes, first it was May, then June, July and now end of August. It is obvious that the websites should be opened and operational within one month, two months, three months since the beginning of implementation. Because, NavyBlue, we all know that putting together a functional and vast e-commerce site -- with secure server shopping, database connectivity to over 250,000 titles, realaudio stream server, literal and intelligent search engines, as well as telephony connectivity to the call center -- is child's play. A site like that can easily be finish within .... (oh what's the industry standard). And you know that Gordon, he's a lying son of a b@#*& or a useless louse for CEO because he keep on giving us deadlines when he really can't forecast an opening date. I only wish we know why we keep on asking him.
About the "$$$$$$" -- yes, cashflow is a concern (thank you for informing us this late breaking news). Gordon has stated that he has been the primary source of interim funding for the company until the Private Placement is completed. He sold/collateralized 6,480,000 shares to get TSIG through this restructuring phase. He has another 7,520,000 shares registered just in case the Private Placement gets delayed and more money is needed. (Gordon, in the CC, stated that about $2.5 million went to the upgrade of the call center)
About the advertising budget -- Gordon has made a statement that about $2 million will be spent on advertising. The money will come either from his loan to the company or from the private placement. I'm surprised, NavyBlue, after reading the transcript of the CC, you can still assert that there is no advertising budget and that there is no coherent marketing strategy ("BoyScouts" ?!) The strategy, in my opinion, TSIG has laid out is reasonable, logical, and realistic. TSIG will implement a grassroots marketing campaigne as well as using large traditional distribution channels. TSIG will also find merchandising partners to launch a value-added campaigne to sell the cards. (read post #952 ragingbull.com NavyBlue, tell the board how you come up with your assertion that there is no advertising budget and there is no effective marketing campaigne.
Finally, what's the deal? Well, you can either believe that CCI is a scam; the equipment Dixie saw on the facility is a elaborate ruse; the website doesn't look like it's legitimate; the opportunity and TSIG's strategies are flimsy and unrealistic; that the management, after reading the CC, has its head up its as*; and that Gordon has registered his shares (6.48 and 7.52 million) so he can dump the company and parachute out leaving us investors dangling in the wind.
Or the other scenario is that we're in a turnabout situation; that the company has suffered a very bad year trying to transition from the travel industry to their present business model; that we do have a cashflow concern but Gordon has put himself up to finance the company in the interim so there is no jeopardy; the websites are making progress but is delayed often; that the company has a legitimately unique and viable business model; the company has a unique and untapped market which it can immediately capture without spending $10 million in advertising to establish brandname; that the card concept is viable, bottomline-friendly, easily merchandizable, easily distributable, it guarantees customer return, and most importantly highly bankable; that the company has shown genuine effort and shown detailed and shrewd strategies; and that given all the above that the CCSI will happen and the telephony-internet model will be tested and the response from the internet-transation-phobic market will be gauged : if any of the above is slightly successful, given the unique position TSIG is in (no competition [yet], large untapped market, quick cash intake [the card], guaranteed repurchase) TSIG will be profitable in very very short period of time; if any of the above is slightly successful, TSIG will be able to open up new channels, new products to the same untapped market; if that happens, in addition to short term profitability , TSIG will also be an explosive long term stock.
So, folks, gauge the situation your way. You're the master of your own destiny.
best,
poisontaster
PS: NavyBlue I really like the BoyScout idea. I think that's a viable alternative to what TSIG's management team has come up with. I think TSIG just might do that because it is apparent that they are all bunch of idiots anyways -- especially without Alyce Cucurullo.
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