To: REW who wrote (9542 ) 11/11/1998 7:21:00 PM From: Martin E. Frankel Read Replies (4) | Respond to of 44908
Hi Bob and ALL, First let me advise everyone that Bob did not breach a confidence as I told him it was fine to post anything he chose from my PM. Now, back to TSIG. I spoke with Rob Gordon today (twice in fact) and also with three other individuals not in management, but very close to the Company. All... I repeat, all confirmed the forward progress of TSIG without any contradictory statements. I know everyone is disappointed in the lack of PRs and I share that same disappointment. But I did not invest in TSIG for it's Christmas sales of CDs in 1998... although I believe we will be there for them. My investment was based upon what I consider to be the enormous potential of the Company and my faith in Rob Gordon as a deal maker and managements' ability to put it all together. Why haven't there been any PRs? Perhaps because of the upcoming PP. The money is there. There is also another offer for $2,000,000 (also with potentially minimal dilution) available upon a moments notice (ie: money in the bank in 24 hours). You'll have to read between the lines on the logic for this. Secondly, there a number of major corporate "deals" reaching culmination at this very moment for both the CompactConnection MusicCards and for the teleservices division, but any leak of any names involved could seriously hurt their finalization. No major corporation wants to think that we (TSIG) are "name dropping". Releasing this information could easily kill the deals. Just remember that the "card" deals are a win-win-win... a win for TSIG, a win for the corporate alliance, and a win for the end-user purchaser. The corporations and organizations which are being "romanced" are well aware that by joining us they are putting money in their own pocket. One final comment. IMO, putting out PRs at this time re: ads in magazines, etc. is possibly a waste of money... as much as we think it would give us publicity. Why? Because each PR costs us about $10,000. and, IMO, that money is better spent at this time buying other things. In addition, the market wants to see signed contracts... not advertisements. When those contracts start to come in... and I believe they will shortly, then we will see our "little baby" stop crawling and start walking. I also believe that we will see TSIG start to pick-up the pace as the marathon begins. Please don't lose sight of why you first invested in TSIG. They are following good business practice... although I do wish they would keep us better informed when possible and when it would not jeopardize any deals in the works. First, time must be spent in evaluating the problems and the market and I believe this has been done. Secondly, a good game plan is needed... and I strongly believe they have it. Thirdly, the game plan must be executed... and that, my friends and colleagues, is where we stand now. The NMF deal was a masterpiece for many reasons, but besides the dollars it will produce in the future, it brought credibility. IMHO, positive things will happen fast as more deals are closed, but exactly when will it all occur? I don't know for sure. This week, next week, two weeks... it doesn't make much difference... at least to me. But it's almost guaranteed to happen right after anyone sells their stock out of frustration. I don't like the current lack of PRs anymore than anyone else, but I believe I have a better understanding now of the reasons... and to me they are logical and good business. Best always, Marty