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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: KonKilo who wrote (2810)	2/4/1999 11:33:00 AM
From: justaninvestor	Read Replies (1) \| Respond to of 57584

Re: TPEG - from the Raging Bull I talked to Tom this morning at Strategic Capital Consultants (SCC) and can report the following information. I'd ask others to followup and see if we get a consistent story. I am paraphrasing, but these are all their words. This is in no particular order. (1) SCC plans a series of press releases over the next week or so. Plan on about one per day. They tried for an all-in-one press release yesterday, but found it was too hard given the status of some of the pending deals (i.e., they are only in the letter of intent stage for some of them). (2) They could have done a PR yesterday that described the letter of intent for the first internet acquisition, but decided to wait until the deal is firm. Their motivation was to fulfill the statement Meyer made to NASDAQ about a PR in a "day or so". (3) SCC itself is made up of four primary groups; management team support, corporate finanace, corporate acquisitions and investor relations. Tom is in the latter group. They also supported the CALP/IMON merger prior to the deal closing. They have no relationship at all with Liberty Capital. (4) The recently completed (and announced via PR today) divestiture of Grasso/Jacobson takes all debts and obligations with it (e.g., quarterly dividend payment to them described in their SEC filings). The resignations of Grasso and Jacobson from TPEG are consistent with the spinoff. As part of this transaction, G&J return 1.65M shares of common stock reducing the amount of outstanding shaes to 6.5M and float to 3.0M. This transaction also eliminates $2.2M of overhead. They do not plan to do much business with the spun off company; any such cross-licensing deals would likely be private arrangements. (5) The MediaWorks International (MWI) sale is proceeding and will likely be closed by early next week. The $5M number arose because that was one of the offers. The president of SCC is flying out today to help close the deal. (6) The company has working captial of about $1M today, prior to the MWI sale proceeds. (7) The 1:6 reverse stock split mentioned in the last SEC filing was part of closing the MWI transaction. Since they are selling it, there is no plan by TPEG for go forward with the reverse stock split. (8) Irwin Meyer plans to stay on and (as well as being a successful Hollywood producer/director) apparently has a experience as a VC. In fact, one of their likely first private internet acquisitions was brought to the table by Meyer. (9) Their plan is to acquire about 3-5 e-commerce and internet related companies over the next 6-12 months. Their business approach is to use TPEG as a holding company similar to the CMGI business model. They would spin off, at a later date, these internet companies and keep about 30%-40% of the stock. Shareholders of TPEG may also get the opportunity to buy some stock of these companies as part of the spinoff. (Indirectly you have equity through them via the TPEG shares) (10) The name and symbol of the company will changes soon to better reflect their new business model.