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

To: Andrew H who wrote (25837)	4/18/1999 7:11:00 PM
From: Suzanne Newsome	Read Replies (1) \| Respond to of 44908

The following information was gleaned from the 1998 10KSB. A note payable to a bank for $328,000 is in default. The "company is materially delinquent on payment of various creditor obligations." The company is "party to numerous litigation and threatened litigation matters related to alleged non-performance of contracts and nonpayment of various obligations." The loss for 1998 was $12 million. The accumulated deficit is $37.8 million (for the accounting-impaired, this number represents the net amount of stockholders' money that has been lost or consumed). In the auditor's opinion, the company is financially unstable and may not be able to continue as a going concern. Given this bleak financial picture, a prudent person might expect the company to commence its financial affairs in a conservative, belt-tightening manner. It's generally accepted that the company is in a turnaround phase, and cash has been very, very scarce. Careful, prudent management of shares may be critical to the very survival of the company. So why do we see the following in the '98 10KSB? A grant of 5 million shares was made to CEO Robert Gordon. In Feb., '99, R. Gordon elected to convert $1 million of the revolving credit he loaned to the company into common shares at a rate of $.15 (he got 6.6 million shares from that little exercise). Robert Gordon is the beneficial owner of 40.7 million shares. In anticipation of any smoke-and-mirrors explanation of this number, the footnote defines this number as including "the amount of shares each person or group has the right to acquire within 60 days pursuant to options, warrants, right conversion privileges or similar obligations." It includes the some 26+ million shares he will receive if he converts the other $4 million of revolving credit into shares at a rate of $.15 per share. It has been posted time and time again that the company must grant options in order to attract 1st class management. However, the 10KSB says that the grand total of beneficially owned shares by insiders--not including Robert Gordon--is less than 2 million shares. Everybody get that? Hwang, Henry, brother Michael Gordon, and Guild together are beneficial owners of a paltry 2 million shares while Robert Gordon holds 41 million shares. Will Robert Gordon not work for less than 41 million shares? It has been suggested by respected members of the thread that the imminent success of TSIG justifies Gordon's share count. They have said that the huge upcoming revenues and profits will obtain for TSIG stock a valuation so tremendous that we will all become gazillionaires. Perhaps that is so. However, when you read through the 10KSB and look at all the missteps, the deals that didn't go through, the bankruptcy declared, the business plans that didn't work, is it not naïve of us to bank on this rosy picture of the future? We have been assured many times that Robert Gordon has nothing but the interests of the shareholders at heart. How does dealing himself 41 million shares and diluting this company beyond recognition constitute "having the shareholders' interests at heart"? The shareholders need to make themselves heard loud and clear! IT WILL NOT BE ACCEPTABLE FOR ROBERT GORDON TO CONVERT $4 MILLION OF LOAN INTO 26 MILLION SHARES. People, this is fact, this is reality, this is what will happen if the shareholders do not make themselves heard. Regards, Suzanne