To: REW who wrote (24904 ) 4/9/1999 12:16:00 PM From: Suzanne Newsome Respond to of 44908
During the couple of weeks before the 10KSB was filed, TSIG made several big announcements that many thought would move the stock. The price would approach $.43-.45 and fall back due to significant selling. Comments were made on the thread such as "this stock is not trading right," "who in their right mind would sell now?" "somebody is shorting." Where WAS the selling coming from? The issue of "shorting" was debated <<at length>> Easter weekend after the SEC filing. The longs presented the case that due to legal, economic, and practical issues, shorting could not be happening. The Ditchdigger/Zeev Hed faction maintained that regardless of those "facts," shorting could take place and probably was taking place. Who knows? The following is borrowed from Chuckwalla on RB: "I think what Marty was alluding to in one of his posts was Hastings was selling off. Who is Hastings? They are the company TSIG originally contracted with prior to Cohesive ad Golin/Harris to set up the Compactconnection website and PR TSIG. They have a website called Stockprofiles.com and they used to feature TSIG on their site. Well Hastings got into hot water with the SEC for touting stocks without using a disclaimer that they are paid for their services. Since then TSIG has cut the cord with Hastings, but as reported in, I believe 97's 10K, TSIG paid Hastings 700,000+ shares for their services. Now that Hastings has all kinds of legal problems they might be selling off to pay debts or fees. Another hard lesson learned for the old TSIG, the old site was bust and we were associated with a less than desirable partner. Wish we could get those shares back but its too late now. There may be some inaccuracies in this story but I think its pretty close." I believe Chuckwalla presents a reasonable scenario that explains at least part of the selling. His post prompted me to (partially) remember a little event that happened last spring or summer. Three people in management left TSIG to form their own teleservices firm. TSIG would own a million dollar stake in the new firm. Did these people leave with a chunk of shares? Were they restricted for a period of time? Perhaps they are freely tradable now. This is the kind of situation in which the shareowners may be hurting for cash and have to sell regardless of the long-term potential of the company. TSIG has been strapped for cash for so long, it has used shares to pay bills for a long time. The parties receiving these shares may or may not be able to treat the shares as an investment, i.e. they may not be able to hold the shares for long-term appreciation. Thus, their selling perhaps does not reflect a negative perception of the company's prospects. Regards, Suzanne