Welcome back Bill,
Before you post here, first you must recognize that his thread defies the natural order of logic as we would all know it. Wetness causes rain, guns kill people, women cause rape, snow causes cold, gravity causes plane crashes, and so on and so on. Once you understand these pieces of wisdom you will have taken the first step towards your education in TSIG'isms.
It's the thread that's causing the drop in share price. The issuing of almost 60,000,000 new shares since this time last year and the proposed addition of 50,000,000 newly authorized shares have nothing to do with the share price. Absolutely nothing!! Market capitalization is a foreign term that's not only not understood, but should never be discussed. God forbid anyone mention the dilution thing.
As to the number of shares outstanding being higher than this time last year, it's actually much higher. This time last year TSIG had about 28,000,000 to 35,000,000 shares outstanding. Right now the Transfer Agent states that there are more than 95,000,000 shares outstanding. Now it appears that there will be a request for a shareholder vote to increase the authorized shares by another 50,000,000. Kind of a back-against-the-wall shareholder vote to increase. Seems that our CEO had shrewdly negotiated a PP deal last November whereby the then authorized shares at the time were viewed as more than sufficient. Actually placed 17,000,000 shares in escrow for this loan. More than enough, or so we were told at the time. We were even told that the 17,000,000 shares were probably far more than necessary and that the actual dilution would be far less than the 17,000,000 shares escrowed. Verbatim from this CEO as re-stated here on the thread many times there will be minimum dilution because we will not need to take any more of the PP funds. Numerous times.
Well here we are, now in June 1999, still waiting for revenues and listening to the same ol same ol revenues next quarter or two excuse. If you go back to the thread and re-read I believe that you'll find this to be the same chant as was told last year by the corporate thread surrogates. Each year trying to appeal to a whole new cadre of shareholders. We've even had the whole management team just resign… and it's a good thing, if you listen to the reports here on the thread. And now, trading today at less than half the share price of last June we're simultaneously being asked to authorize another 50,000,000 shares. And get this, we're being told once again that this will be the most additional shares needed for the PP conversion. Just like last time. Go figure. Also go read the filed documents and get an accurate handle on the share price conversion floor or lack thereof of this PP and also read about the potential dilution to shareholder equity. See if you can find the 50,000,000 share limitation in the agreement or the so-called $0.10 floor.
God forbid anyone try to bring peoples attention to these material issues. Even I was doing my best to repel Ditch Digger a number of months ago when he was trying to alert the thread to this potential. But when you read the posts here you'll quickly see that it was Ditch's, Zeev's or my posts that are responsible for the share price erosion.
So, bottom line yes there are more shares outstanding and probably will be many many more before TSIG sees revenues. When the dust settles it'll be very interesting to see just what percentage of TSIG will be owned by these very friendly?? PP holders, and what percentage the little shareholders have. The very same friendly?? PP holders that even according to the filed SEC doc's have the right to not only short but short TSIG against the box. Of course this shrewdly negotiated PP agreement has nothing to do with the declining share price.
Right now the shares held by the average shareholder this time last year is worth about 33% of what it was this time last year. Of course if you follow the logic here at the thread it's the posters that have caused this erosion of value. The predictable inability of the CEO to execute a plan, any plan, had nothing to do with it. And by the way, has anyone asked why the latest management team resigned?
Oh and another rule of etiquette here at TSIG. Don't ever, never never cover the same issue more than once if it's even remotely possible that it shed's a caution light on a lurker's decision to impulsively invest or to actually give it a little more thought and do a bit more research.
Now here's where it gets a bit difficult. If there is the remote possibility that the company is doing something that could earn some revenues later, much later in the year you are not only allowed, but enthusiastically encouraged to repetitively post over and over again about that revenue bearing potential regardless of the factual history of this CEO's inability to generate revenue of any dimension for the almost 4 year period here at TSIG or even at his previous 8 to 10 year effort at Phoenix which went bankrupt after he reportedly earned? or sold millions upon millions of dollars worth of eventually worthless shares to the public.
Oh and one more thing please do not discuss the 50,000,000 to 70,000,000 shares of TSIG that have been granted to this CEO over the last 2 years or so and then which he sold to the public at 30 to 300% profit. Other than being careful to speak about these facts only once, it's ok to speak repetitively about projections of possible revenues.
SC |
