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

To: Rich who wrote (29358)	5/28/1999 12:39:00 PM
From: Suzanne Newsome	Read Replies (6) \| Respond to of 44908

Paul Henry took exception to some of my analysis posted yesterday regarding Gordon's shares, secondary offerings, Phoenix, and SEC censure. Clarification follows: Yesterday, I suggested that Gordon, fresh out of Phoenix, would not have been able to raise public money for a new company due to the baggage associated with Phoenix. Henry provided the following information about Gordon's involvement with Phoenix, a company which tried to establish an airline reservations system in China. Phoenix was for a significant period of time a $.30-.40 stock. When George Soros came forward with a $25 million cash infusion, the stock price rose to $2-5 trading on average in excess of 100,000 shares per day for around 2 years. Many people made a lot of money during this period. The implication is that Gordon made money during this run-up. Since the company did eventually declare Chapter 11 bankruptcy, those that bought at $5, the top, did lose money. According to Henry, Gordon was CEO of Phoenix to bring in financing and the contracts. It was never intended that he supervise 200 high tech employees. During his tenure as CEO, Gordon signed a historic joint venture agreement with China Southern Airlines, the largest airline in China. He raised over $30 million for the company. When Gordon stepped down as CEO in early 1997 (he was still board chairman), Phoenix had more than $7 million in the bank and no debt, Soros was on the board, and Dale Bloss was named CEO (Bloss having installed an airlines reservation system for UNISYS). A year later, Phoenix filed Chapter 11. Also according to Henry, in 1990 an unhappy investor requested an SEC investigation into Phoenix. The SEC looked at everything for 1 ½ years. What they found after 1 ½ years of investigation is that the company had mailed a letter to 6 people saying the company was going to file a registration for some shares. The company engaged lawyers to draw up the registration papers for which they were billed $25,000. For some reason, the registration was never filed. The SEC found Gordon in violation of regulation for putting in writing a statement that the company was going to register shares and never actually registering the shares. Henry feels that the $25,000 lawyers bill constituted proof that the company fully intended to register the shares at the time the letters were written. Gordon was giving a slap on the wrists by the SEC. Also according to Henry, when Phoenix filed Chapter 11, Soros offered to pay all the costs of an investigation to determine if anybody had screwed anybody else. Shareholders spent $600,000 of Soros' money turning over every rock and never found one thing. In answer to my question as to why TSIG never did a secondary offering, Henry said it is not practical to do a secondary offering for a 20-cent stock. There are too many costs associated with it. Nobody on Wall Street wants to handle it. Henry admits that Phoenix ultimately failed, and that since Gordon was the CEO for a period of time, Gordon will be attributed part of the blame. However, considering the limited purpose for which Gordon was there, the significant accomplishments he achieved while in office, and the shape Phoenix was in when Gordon stepped down as CEO, Henry strongly objects to the characterization of "failure" being applied to Gordon. Regards, Suzanne

To: Rich who wrote (29358)	5/28/1999 1:05:00 PM
From: REW	Read Replies (1) \| Respond to of 44908

It will be of great importance for all who have Marty's phone number to not call him after the confirmation is complete. There can be no suggestion of insider improprieties. His phone will now be as off limits as his posting. He will not be able to do anything except tell you about the weather in California. He will also not be able to return calls. You have no idea the relief that will be to his family. Marty does read the threads and will understand what is being asked. However, the best way to communicate with him will be through PM or email. Do not expect a response in detail, if at all. Understand the volume and repetitiveness of many comments. All suggestions or comments will be appreciated that are transmitted through the PM or email system. Also understand the implementation time of many items that will be taken into consideration and/or actions and the probable melding of them with other ideas and/or the existing system. Bob