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

To: cicak who wrote (8675)	10/25/1998 8:59:00 PM
From: REW	Respond to of 44908

As best as I can tell from the article, it still apears the merger was mandatory for survival. As is stated merger partners are being sought out because of bleak conditions. Even though they have 1.2 million customers, the losses keep mounting. This apears to be due to the enormous overhead required to maintain the inventory necessary to service the customer base. Also the high amount of advertising necessary to bring a new customer is also crippling. It is not an outstanding formula for success. CDnow may be able to come to a breakeven status if they can acquire or eliminate some more competitors, but that does not stop others from entering the market. This tactic will take time and additional resources. TSIG does not have the inventory problem since they do not house any CDs. The advertising should not be a big problem after they are recognised. The CARD is a natural in that the renewal rate is extremely high once first purchased. The promotional aspect of the Card by endorsement will entice potential customers to try out CCI and purchase. The customer base of CCI will then grow at the cost of the other competitors that simply advertise to get their customers. The returning customer to CDnow only goes there because he has been there before or saw an ad. CCI gets its customers primarily from the promotionally endorsed card and returns because he is a member and has purchased a Card. CCI with the Card and competitive pricing should quickly rise above the rest. Within months the competition should recognise the marketing power of TSIG's CCI division. Unfortunately it will be to late to stop CCI as it expands it's market share. The power of endorsement is about to be unleashed. Just an opinion Bob