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

To: Bald Eagle who wrote (27921)	5/11/1999 11:16:00 AM
From: Ditchdigger	Read Replies (1) \| Respond to of 44908

Long document,don't have time to read it now-but this gives you an idea what the dilutive effect of the debs is..I don't believe this means they are selling now,but what the effect would be if they did..Look forward to the disection of this document when I return later.This is a snippet..DD "SUBJECT TO COMPLETION, DATED __________, 1999 PRELIMINARY PROSPECTUS TELESERVICES INTERNATIONAL GROUP INC. 50,346,890 SHARES COMMON STOCK The selling securityholders named below are selling up to 50,346,890 shares of the common stock of TeleServices International Group Inc. under this prospectus, including up to 48,822,640 shares that they have acquired or may acquire upon conversion of convertible debentures and 1,524,250 shares that they may acquire upon exercise of warrants. The selling securityholders acquired, or will acquire, the convertible debentures and the warrants in the private financing described below under the caption "Description of Securities - Debentures and Warrants." TeleServices International Group Inc. has not made any underwriting arrangements with respect to the common stock. The common stock is traded on the over the counter electronic bulletin board maintained by the National Association of Securities Dealers under the symbol "TSIG". The selling securityholders may offer their shares of common stock in the manner described below under the caption "Plan of Distribution" in public or private transactions on or off the over the counter electronic bulletin board, or any other national securities exchange or automated quotation system on which the common stock may be listed or traded, at prevailing market prices or privately negotiated prices. Sales may be made through brokers, dealers or other agents who may receive compensation in the form of commissions, discounts or concessions. The selling securityholders and participating brokers or dealers may be deemed to be "underwriters" within the meaning of the Securities Act and any commission, discount or concession they receive may be deemed to be underwriting compensation." freeedgar.com

To: Bald Eagle who wrote (27921)	5/11/1999 1:50:00 PM
From: Suzanne Newsome	Respond to of 44908

Baldy, I thought this was a simple question when I started to answer it, but after giving it some thought, I see why you are confused. This is my take on it (I'm not an accountant). The $380,986 is a balance sheet item, an asset. This asset was sold for $706,000 resulting in a gain of $326,000. I believe the 10Q will show a "Gain on Sale of Asset" of $326,000 and the $706,000 will not be included in revenues. Consider a similar situation. Suppose a company sells millions of widgets at $3.00 each. One of their widget factories is in the middle of a proposed freeway and is sold for $10 million. I do not believe the sale of the factory is going to be mixed in with the sale of widgets. One reason is that the sale of an asset is a one-time event, and gains from such activities would be valued much less than a recurring revenue in the same amount. I read somewhere that profit from a non-recurring sale would be attributed a PE of 1. Thanks for bringing this to our attention. Regards, Suzanne