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

To: Jazzbo who wrote (23502)	4/3/1999 2:54:00 PM
From: Andrew H	Respond to of 44908

Good post, Tim. Clearly TSIG has a lot going for it, much of which you have enumerated in your post. Management has assembled an outstanding team which is in the midst of an amzing turnaround. Unfortunately, this turnaround has cost a good bit. This is no doubt a risky situation. There are now about 67M shares OS, which is not a small amount. There appear to be about 41M options which is a huge amount. One can only hope that very few of these will be exercised in the next several months, until the price is considerably higher, since the stock price would be damaged by conversion in the near future. Somehow it is hard to imagine Gordon converting at this point in time because he is hoping the options will be worth a lot more in the future. He certainly has no interest in the company or stock price failing. The PP is a more imminent concern, IMO. Shareholders are right to be concerned about it. So far, only about 1.5M has been used and the dilution from that is likely to be fairly minimal. A lot depends on how high the company can get the share price. At 1 we are looking at only about 2M shares with the 30% discount. At.30 we are looking at about 7M shares with the discount. And Sword makes an interesting point regarding the ability to delay conversion at 2.5%/month. Of course there is little pint in delaying if the company does not have a lot of good news coming. My guess is that with the heavy hitters now on board, some other form of financing ought to be possible. With Hwang's conncections, alternative financing seems even more likely. So we are counting on a couple of things if the company is to succeed--first of all that the company will need no more of the PP financing and that other financing can be found. Second, that management has news to release that will raise the stock price. I am hoping to soon hear an announcement that alternative financing sources have been found to tide us over until profitability and that no more of the PP will be needed. I also hope to soon hear about some of the big rumored deals. If we hear both of these things, we should be ok. Obviously the new talent that management has hired feels comfortable with what they have been told. Hopefully that inofrmation can soon be shared with shareholders to make them feel more comfortable as well. The vast majority of companies that have used this sort of PP financing have failed dismally. Let's hope that TSIG will be one of the rare exceptions. Personally I think they have a good shot at it, given their unique business model and connections. But it is by no means a given. At this point, all the bad news is on the table. Let's see some good news now.