To: tfk who wrote (18657 ) 3/3/1999 3:42:00 PM From: Martin E. Frankel Read Replies (2) | Respond to of 44908
tfk, <<...more shares were issued to attract the high-caliber VPs, thus increasing the outstanding share count...>> Although I have no direct knowledge of this, tfk, I would definitely presume this to be a valid assessment. The facts are quite simple. If you want the best... you pay for the best. And, IMO, we got the best. These high-caliber VPs are more interested in stock and an equity position than they are salaries because in the long run the stock is where the "real" money is. Just pay a visit to Silicon Valley and see the employment packages being presented. There are more headhunters there than gas stations. The biggest question for potential management people is how much of an equity position is being offered. If you had a top position in any firm or company (of the caliber that our management team came from) would you leave it to join a rapidly growing, but relatively small, company such as TSIG without being given a substantial equity position in the new company? I wouldn't... nor do I know anyone who would. So I would not be surprised to find that there has been new stock issued in the past few months. For nothing you get nothing! <<I don't mind this if the new management team will increase TSIG business by leaps and bound, which seems to be the case so far, and the share price should eventually reflect this growth.>> Thank you!! Obviously many so-called "investors" have not been involved with startup/turnaround companies before. I know we are not Amazon.com (yet)... nor do we have their sales (yet), but AMZN has, at last count, over 158.29 million shares outstanding and a float of about 62 million shares... all with a negative cashflow and negative earnings. They've had more time than TSIG to build a name and a following. And I agree that we need a top caliber PR firm to do our PRs and make sure they are seen, to handle IR, and most importantly, to get the market to know TSIG exists... and I believe we'll have one in about two weeks. As far as the selling is concerned there are many possibilities: (1) novice investors who can't see the forest for the trees and worry too much about "dilution". Are these the same people always looking for a "free lunch" and resent top caliber management having a large equity position. Hopefully, someday, these same people will succeed enough in their own business or profession and then their ideas will, IMO, change. On the other hand, I like management having a strong equity position. It's called incentive and motivation. If they bring in the business the stock price will follow... period! And I don't care how many shares they had to be given to get them on board. I repeat again... it's the business that counts and the share price will follow... especially when we have a good PR firm! (2) day-traders and momentum traders buying in anticipation of the new website being up this Friday and now learning from posts this morning that it would not be up for about another couple of weeks. Those selling are playing right into their hands because, IMO, these traders will be right back in the "game" as soon as they think the site will go "live". (3) old PR firms and website producers (no longer involved with TSIG) paid in freely trading stock a long time ago may be selling to make some money. They have to pay their employees too. I could hypothecate on and on. I don't believe the PP people are shorting the stock... too difficult, too expensive, and too dangerous. I don't believe the Company or any insiders are selling... unless they want to wear a striped suit... and it isn't blue. Is it possible that the MM's are "playing" to cover a short position or build inventory for upcoming announcements? Quite possible. Please, stay calm. It's very strange that this has suddenly become a major issue brought to the threads initially by individuals who just joined (for example on RagingBull this morning and only posted once)... or by Ditchdigger who owns no stock in TSIG and interestingly has averaged about 100 posts/day in the two years he has belonged to SI. And has anyone else gotten anonymous phone calls with this same "information"? Someone has an agenda. Don't fall for the trap!! Be Right!!!... Sit Tight!!! Best always, Marty