TZL - TZ Limited

[Sean K]

Just a quick question - when this stock goes NASDAQ, will current shareholders be offered one NASDAQ share for each ASX share held? Anyone know? The last announcement read:

"Current TZ Limited security holders comprising the existing shareholders, options holders and convertible bond holders will, prior to the actual listing, own exactly the same ratio and value of securities in the TZ group as they do now."

Does that automatically translate to one ASX share = one NASDAQ share? Doesn't read like that to me. IF the NASDAQ shares list at the absolute minimum (to be pessimistic) of $5, and the ASX shares are worth (to be equally pessimistic - purely for the sake of argument) $2.50 US, would that mean we only get 1 NASDAQ share for each 2 ASX ones held, equating to "same value"?

Call the company.

02 8233 9229

Take you 30 seconds, the same time it took to write that post.

 

[Paladin]

Just a quick question - when this stock goes NASDAQ, will current shareholders be offered one NASDAQ share for each ASX share held? Anyone know? The last announcement read:

"Current TZ Limited security holders comprising the existing shareholders, options holders and convertible bond holders will, prior to the actual listing, own exactly the same ratio and value of securities in the TZ group as they do now."

Does that automatically translate to one ASX share = one NASDAQ share? Doesn't read like that to me. IF the NASDAQ shares list at the absolute minimum (to be pessimistic) of $5, and the ASX shares are worth (to be equally pessimistic - purely for the sake of argument) $2.50 US, would that mean we only get 1 NASDAQ share for each 2 ASX ones held, equating to "same value"?

Just to answer my own Q - looks like the chances are it will be a 1:1 offering. I'm wary because I was wondering why it was so ambiguously worded - but it might just be to account for the dilution and possibly to give the directors room to move in the specifics of the prospectus.

EDIT: Kennas - they answering the phones after hours and/or on a weekend? I called the number you gave me and it was some kind of massage parlour specialising in catwoman fetishes

 

[Sean K]

EDIT: Kennas - they answering the phones after hours and/or on a weekend? I called the number you gave me and it was some kind of massage parlour specialising in catwoman fetishes

LOL That is the number I usually call for a massage here in Lima. Maybe they're starting to change their business focus? ...

 

[Paladin]

LOL That is the number I usually call for a massage here in Lima. Maybe they're starting to change their business focus? ...

They certainly put the 'purrrrrrrr' in purrrrrvasive technology.

I am presently trying to get the company to confirm my 1:1 assumption in writing.

 

[Paladin]

Have rec'd written confirmation that the listing will be 1:1 if and when it goes ahead. My details deleted:


Hello *****, thank you for your message. I also received your message through our website contact form.

You are correct. At the time of the NASDAQ listing, your TZL shares will be converted on a 1:1 basis into shares of the NASDAQ entity, TZ Group Inc.


Regards,

Fraser Brown
Communications

TZ Limited
Email: f.b**wn@tz.net
Ph: +61 (2) 8233 6123
Cell: +61 (0)432 020 678
Level 1, 37 Bligh St
Sydney, NSW 2000 AUSTRALIA

www.tzlimited.com

On 19/07/2008, at 4:22 PM, ****** wrote:

> Dear Mr Brown,
>
> As a TZL shareholder, I have a question regarding what will happen to TZL shares in the event of a NASDAQ listing. Can you please confirm that current TZL holders will be offered one NASDAQ share for each ASX listed TZL share held? I'm told that you are the relevant person to contact.
>
> Thank you very much.
>
> *****

 

[grace]

The Speculator today makes some comments on TZL, and notice that his children own shares in TZL. Well they are still holding now aren't they.

TZ Ltd: I would take a longer term view of this Australian-listed technology company now based in Chicago where it is developing “smart” microchip fastening systems with a range of applications from vehicle to aircraft assembly.

Its shares have retreated from a 12-month high of $7.20 to a low of $1.95, but have recently recovered to $3.62 last week following the signing of further development agreements with international firms such as BEA Systems.

The company plans to transfer its listing to America’s NASDAQ Global Markets Exchange in the coming months. Disclosure: The author’s children have shares in this company.

 

[Pommiegranite]

The Speculator today makes some comments on TZL, and notice that his children own shares in TZL. Well they are still holding now aren't they.

Good pickup Grace.

Hasselhurst admitted last September that he been in touch with sources close to the company, who had admitted a $25USD + NASDAQ listing.

His children still hold. Surely, he would have advised his own children to sell had he heard otherwise.

 

[shaunm]

Yeah I've read a few of this guys documents and he always says his children hold the stock.
Is it some way for him to cover himself or is it purely for novelty; what gives?

On the SP, this is becoming a real grind. I have a little more funds to invest but am just wary of picking up to to high, much like I did with my current holdings (mid $4).
Ultimately it won't really matter I guess once NASDAQ is upon us.
Still this one has put a large red number in my portfolio, which I need to keep reminding myself that it will be a large green number one day; fingers crossed for early 09.

 

[Paladin]

Yeah I've read a few of this guys documents and he always says his children hold the stock.
Is it some way for him to cover himself or is it purely for novelty; what gives?

On the SP, this is becoming a real grind. I have a little more funds to invest but am just wary of picking up to to high, much like I did with my current holdings (mid $4).
Ultimately it won't really matter I guess once NASDAQ is upon us.
Still this one has put a large red number in my portfolio, which I need to keep reminding myself that it will be a large green number one day; fingers crossed for early 09.

Haselhurst has said in the past that he holds virtually no shares himself. Which is interesting, eh?

 

[grace]

Haselhurst has said in the past that he holds virtually no shares himself. Which is interesting, eh?

Yes, I have read all of his articles for the last say 2 years, and this is the only one he has ever made a disclosure about. He says he doesn't buy into stocks he covers, and this was the only exception in the last 2 years.

 

[oldblue]

Haselhurst has said in the past that he holds virtually no shares himself. Which is interesting, eh?

I would pick that it's a way of saying that the shares are held in a trust, the beneficiaries of which are his children. I wouldn't doubt that H himself makes the decisions, probably as a trustee.

 

[Mitchy]

Hi Guys,

Not sure if you have seen it already but the new research report is out from Duttons.

http://www.jmdutton.com/research/TZ/index.html


They maintain a strong spec buy. Target $9.20 (slightly reduced) but l believe they are being totally conservative on the revenue forecast (which isn't unexpected for a broker).

Mentions NASDAQ listing still progressing.

All in all nothing really new to report, but with this one any news is good news. I await the quarterly report which should be out today or tomorrow as well.

 

[Pommiegranite]

Some more jobs added today. TZ are on a recruitment drive. I guess they must be pretty confident on revenue to pay for these salaries

http://www.careerbuilder.com/JobSeeker/Jobs/JobResults.aspx?ncc=^"Telezygology+Inc."$

 

[Eddyl]

Some more jobs added today. TZ are on a recruitment drive. I guess they must be pretty confident on revenue to pay for these salaries

http://www.careerbuilder.com/JobSeeker/Jobs/JobResults.aspx?ncc=^"Telezygology+Inc."$

I would be great if the company gave a little more insight into its business operations. I blame management for being so opaque about the status of its operations and objectives. It never hurts a company to do some self promotion.

 

[Paladin]

I would be great if the company gave a little more insight into its business operations. I blame management for being so opaque about the status of its operations and objectives. It never hurts a company to do some self promotion.

Well, one strategy would be to do what you suggest and dripfeed market info. The problem, of course, has been the DKR overhang here, with the selling into any show of strength. Until it's clear (and there are about 1.6 mil shares left there) some would argue it would be unwise to put a rocket under the SP. That said, look at the unusual and after close cross trades this week and you'll see a story about what our Hong Kong hedger friends seem to be doing. Here's hoping one of the directors has been clever enough to grab a modest parcel here, if only to put a 'director buying' on the chart.

The other strategy would be to keep the powder dry, wait for an opportune moment, and then come out with the mother of all releases as buyers build up (and they're lining up nicely at the moment). Note that some milestones we know have been met (GAAP auditing of US companies, uptake by various customers, Larson doors out, some new market segments being bandied around - note 'medical' has been in some of the job descriptions advertised, most of which jobs are now filled - why do you think they're hiring so aggresively at the moment?) have not been announced to market. They stated at the Amsterdam presentation that the market would be updated about NASDAQ progress by the end of next month. If DKR can be gotten out of the way AND there is some good news then this stock is so rusted on anything could happen. So the very thing you're blaming the management for might be quite a neat trick indeed.

That said, of course, it might be no trick/tactic at all and the lack of news flow *may* just be that they have nothing to report. If that's the case, and NASDAQ is delayed again, look out. This is still very much a speculative stock.

My ruminations here are also speculation. So please, as always, DYOR.

 

[seajay]

Very positive preliminary report . . . . . . not a huge amount of news, although the optimistic could read it as though the NASDAQ listing plans are on schedule.

Hells bells, have been a holder since Jan '07, and accumulating since . . . what's another month or two or three or more !!!!!!!!!!!!

 

[TheAbyss]

Dont know about TZL anymore. Losses for the FY up 50% ($8m to $12m).

Revenues are up slightly however their costs of doing business have increased due to various reasons,

1. Employee related expenses up almost 50%
2. Professional services up almost 150% (more than likely but not clear that this due to legal fees mostly once off)
3.Travel and accomodation up 40%. Hope this is for MA activity not junkets on our cash.
4. Finance costs up 60% (an additional $800,000).

I am wary because TZL appear to be promoting themselves as intellectual property developers with access to a suite of quality products for sale yet appear to be battling to get them to market even with an increased portfolio available.

I would like to see increased sales activity pretty quickly rather than coming to market for more cash. I know they have $23m available, however at the rate they are spending it the next 12-18 months is a crucial time for TZL.

They do have some very interesting products so still interested for a while yet

 

[YELNATS]

Dont know about TZL anymore. Losses for the FY up 50% ($8m to $12m).

It is always good to be wary, but isn't this business in its' start-up phase so inital losses are not unusual and to be expected?

 

[TheAbyss]

With increased revenues it should follow that profits increase also. That is why i listed the additional costs incurred so that some comment could be offered as to whether the forum feels that the costs are well invested in order to realise greater profits at a later date or are they spending money to stay in business and pay themselves high salaries?

I listed travel and employee related expenses specifically for that purpose in the hope that a few minds could compare notes and we can gain an increased understanding of what is happening with our investment.

One side of the ledger are the increased costs and etc and the other is the increased portfolio and sales related staff that have come on board.

 

[Pommiegranite]

Dont know about TZL anymore. Losses for the FY up 50% ($8m to $12m).

Revenues are up slightly however their costs of doing business have increased due to various reasons,

1. Employee related expenses up almost 50%
2. Professional services up almost 150% (more than likely but not clear that this due to legal fees mostly once off)
3.Travel and accomodation up 40%. Hope this is for MA activity not junkets on our cash.
4. Finance costs up 60% (an additional $800,000).

I am wary because TZL appear to be promoting themselves as intellectual property developers with access to a suite of quality products for sale yet appear to be battling to get them to market even with an increased portfolio available.

I would like to see increased sales activity pretty quickly rather than coming to market for more cash. I know they have $23m available, however at the rate they are spending it the next 12-18 months is a crucial time for TZL.

They do have some very interesting products so still interested for a while yet

Abyss, I don't know where you got your figures from, but here are the real stats:

2007 Net loss - $10.8 million
2008 Net loss - $12.2million

That means a 13% loss increase NOT 50%

As you have stated, much of this is employee related and professional services. This is due to a massive increase in headcount and also NASDAQ listing advisory fees for Credit Suisse and solicitors.

I am extremely happy that TZ are spending on these 2 items. This is what is called putting money to good use.

One should never just take the financials at face value. Have you noticed the increase in net assets?

As for revenue, expect a significant increase for the September quarter, as this a high value purchase order is currently being delivered.

I can only assume that you are either unfamiliar with TZ or/and unfamiliar with the transition process of how startups move into the production phase.