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


To: Ellen who wrote (23753)4/4/1999 11:57:00 AM
From: Ditchdigger  Read Replies (1) | Respond to of 44908
 
" Pursuant to an employment agreement dated December 4, 1998, the Company
engaged Robert P. Gordon to continue to serve as Chairman (an officer position)
for a term of five years. Pursuant to the agreement, Mr. Gordon will be paid a
salary of $360,000 per year. In addition, Mr. Gordon received a restricted stock
award of 5,000,000 shares of common stock, which are considered fully-vested.
Mr. Gordon is also entitled to the following: car expense allowance, major
medical health benefits equivalent to that provided to other officers;
indemnification from any claim or law suit which may be asserted against him
when acting as an officer of the Company provided that said indemnification is
not in violation of any federal or state law or rule or regulation of the
Securities and Exchange Commission. The agreement also contains certain
provisions with respect to disability, termination, confidentiality and
non-competition."



To: Ellen who wrote (23753)4/4/1999 12:49:00 PM
From: ztect  Respond to of 44908
 
Geeze Ellen.....

dd must think we can't read like one of his friends...

Now what does this little excerpt mean...

"....Mr. Gordon will be paid..."

Does this represent past compensation?

Like duh...last year's compensation is clearly listed as $178,000

Whether or not Gordon's future package of $360,000 annually for the next five years is justified can't really be assessed until next year's 10-k. However we should all just take a moment and crunch some numbers regarding just the one Babe Ruth League deal that Rich C. and Sam helped bring to fruition to refocus on what this year's '99 10-k may bring.

900,000 kids participate in this baseball league.

Cards are sold instead of candy bars or whatever to generate revenues.

Cute little kids knock on your door and ask if you can help them and their teams by buying a card. The kids have added incentives to sell cards by rewarded with prizes for selling the most cards.

These incentives are listed on the babecard.com
website which is a TSIG site specifically

thebabecard.com

Now let's again crunch some numbers with these parameters defined

-Cost of card $10
-Cost of card....neglible
-Split of card receipts from sales of cards 50/50
-Net receipt for TSIG $5 per card

-Card offers 20 cds at $10.99 each.(rounded to $11 for gross receipts calc)
-MusicCard price of $10.99 each is on average lowest on Internet
for cd's especially new releases.
-Profit margin per cd is $1.00

===========

Scenario 1). Very conservative

100,000 of the 900,000 on average sell 10 cards each. On average each purchaser of the card buys 4 cds this years.

This translatess to 1,000,000 cards sold and 4,000,000 cds sold.

So that equates to $5 mil from card sales and another $4 mil from
cd sales.

$49,000,000 mil gross receipts excluding $5 mil to BR league teams

$9,000,000 profit

$5,000,000 to Babe Ruth League

*******************

Scenario 2). Less conservative, but still conservative

200,000 kids sell 15 cards each. Each card purchaser buys 6 cds this year.

Crunch again...

3 mil cards and 18 mil cds sold

equals $7.5 mil cards sales for TSIG ($7.5 mil to BR league)
and $18 mil from cd sales

$205,500,000 Gross receipts excluding BR cut

$25.5 mil profits

$7.5 mil to Babe Ruth League
**********************

Scenerio 3). Less conservative

300,000 (33%) on average sell 20 cards. Each card purchaser on average still buys 6 cds this year.

6,000,000 cards sold. 36 mil cd's sold

Profit from cards 1/2 * 10 * 6 mil = 30 mil
Profit from cd's= 36mil * 1 dollars each cd= 36mil

Gross receipts = cards sales plus gross cd sales
or $30 mil plus 36mil cd's * $11 ea = $426,000,000

$76,000,000 mil profit

$30,000,000 mil to Babe Ruth League
************************
Scenario 4). Optimistic projection

400,000 kids sell 20 each. Each purchaser buys 8 cds this year on average.

8,000,000 cards sold
64,000,000 mil cd's

45 mil from card sales
64 mil from cd sales

$749,000,000 Gross receipts

$109,000,000 Mil profits

$45 mil to Babe Ruth League

**********

Cost of marketing?

Zilch...Babe Ruth League and TSIG (MyCard) share receipts.

Nuff said.

z

btw...someone PLEASE check my math....I've been known to make a math mistake here or there.