TS03 Inc Trust Units TSTIF

Managment Evaluation

[Blue_Sky]

Some of you have accused me of 'bashing' on Rumble in prior posts but I do not look at it this way.  I have simply provided shareholders with an opinion on the destruction of value this management team, Rumble in particular has bestowed upon us common shareholders.  Until now, there has been no one to hold this team accountable and they have paid themselves well with high salaries and aggregious option packages and have failed to deliver any shareholder value 100% of the time.  This would not be tolerated by 99% of the public boards in North America but for some reason shareholders have elected the group that has kept Rumble and his team in charge now for 10 years.  I recently met a CEO of a much larger organization that discussed how he and his team are compensated.  They deliver a long term growth plan to the board (an IRR or ROE/ROIC hurdle) and are compensated when they reach or exceed these targets.  They are only comp'd if they achieve these targets over and above the WACC.  I know Rumble doesn't know what any of these terms are or mean (and he runs our company) but his sake the WACC is the weighted average cost of capital.  For TOS and as to be expected for a micro cap with no revenues or profits the WACC is quite high at ~15%.  This compares to a WACC at well medical device companies such as CMD at 10%, STE at 9.1% and MDT at 8.4%.  I could live with TOS having a higher WACC than these other cited examples by greater than 50% for now but given Rumble has never, ever generated anywhere close to a positive return metric.  In fact his ROIC for the last 4 years has been -47.8%, -40.1%, -69% and -47.2%.  He has sunk (along with his predecessors) $118 M into the development of the VP4 to present state and generated revenue of just $400,000 last qtr.  Its appauling especially when you look at his comp package.  If we're going to payout almost $1.0 in salary plus bonus plus 10-year options then why aren't we paying a CEO that can build a company and work towards creating shareholder value?  The sad part about this investment is that the CEO  has no clue what I am even talking about!  The good news is that Ramblin's new bosses completely understand and he's on a very, very tight rope.  If he cannot deliver any sales momentum over the next two qtr's I would suggest to you all that he will be gone from TSO3 once and for all.  The shares rise at least 20% on that announcement.