Shareholders,
This Wednesday afternoon, MWito, FamilyGuy, and Russ49, participated in a conference call lasting almost an hour and a half with David Saltrelli, the CEO of Net Savings Link. It was an interesting and informative meeting that answered many of our questions, though not all, and during which we found Mr. Saltrelli to be friendly, open, talkative, and very knowlegable about the business and the challenges that lie ahead. Going into the meeting, we had a list of questions that we wanted to cover, but it was lengthy and ambitious. Still, we covered quite an array in one dialogue. As a result, we came away feeling that we knew Mr. Saltrelli better, the direction he is taking the company, and his rationale for what he is and isn't doing. We feel, if executed well, the business model has tremendous potential.
It was stated to him that certain people believe that he lacks
integrity and that he his a scammer. To this, he went into length
regarding his biography, including his education, and the companies he
has been affiliated with.
We asked about the numerous companies that
AugustineAl listed. His explanation sounded logical. He and Peter
Schuster have been partners for a long time, seemingly going back to
his days in business school. They have proposed and registered many
business ventures over the years. Some of them never were funded by
investors, thus never got off the ground. Some were sold to other
investors, who registered them, then changed their names. He did
mention one, Net Maximizer, if I recall, that was publicly traded
prior to 9/11, but unfunded. The stock went up like crazy. They were
due to sign with a backer on Sept. 26, 2001, however the attacks of
9/11 intervened and the market tanked. When that happened, the source
of funding backed out, the stock tanked and the company went out of
business. During this time, Mr. Saltrelli stated that he did not sell
any shares. Additionally, he noted that though he could have sold
NSAV shares privately, he hasn't. This can be confirmed by searching
the SEC files.
Many times during the call he said that there are
things that he could not say because of SEC rules. He mentioned that
he cannot make statements about the future regarding share price,
revenues, etc. He could talk about the business model and things he
is trying to do. To us, he came off as a sincere businessman,
excited about the prospects of the business, and trying to grow his
company, not make a quick buck.
He spent considerable time discussing affiliates. By affiliates,
he meant companies, organizations, media outlets. By partnering with
them, there is tremendous potential for both parties.
For instance, if a radio station with one million listeners signs on,
there is no cost to them, yet they will get a cut of each and every
subscription fee and sale. They stand to make much more than from
paid advertising, at no cost to them. He said one million listeners,
should deliver one million dollars in one year. The same would hold
true for large companies and labor groups. He said he cannot say what
is on the horizon with these organizations, but look for something
soon. He stated once they sign one or two, then others should follow.
FamilyGuy proposed that he have AdWords and SEO to generate
traffic to the site. He agreed and said he would be signing a company
within in the next few days. FamilyGuy proposed a certain company to
do this work, which David wrote down and said he would contact.
At this time he is not going pay for advertising. He said that
Groupon and Living Social are paying out tremendous sums to build
their traffic and that each dollar in revenue costs them more in
advertising. Net Savings Link does not have the kind of money that
is required to do that, but he believes the use of affiliates is a
better model as NSL will show profitability almost immediately. In
fact, he believes that the current quarter will be profitable. By that
he said it will show more profits than expenses.
Regarding website traffic. Currently hits are low, but that could
go up by leaps and bounds with the signing of one affiliate. His goal
is to have hits up to 500K to 1M per day by Christmas. Subscriber growth should do the
same.
It was asked if the Daily Deals are making much money? He said
not yet, or words to that effect.
Membership is currently 10-12K, but will grow by leaps and bounds with the signing
of affiliates. He is looking to sign big ones.
Regarding public relations and news. We all agreed that we need
more. He said he is well aware of that, and will put it out as soon as
his lawyer says that it is OK to do so. He told us there are many good
things about to happen, but can't say what they are until they happen.
Regarding attracting more venture capital, he said that he would
like to have more investors, but with the stock so low, he doesn't
want to make any deals and have to give the stock away. He was happy
to close the book on Cen-1 and be debt free, instead of having
outstanding "toxic" warrants. He says he believes that the Cen-1
investors are going to hold the stock until it is up to $1.00.
He mentioned a few times how low the stock is and that he is not
happy about that. In fact, he called it ridiculous. He said that they have authorized one billion shares but are not going to issue them until they need them for
acquisitions, splits, etc.
Peter Schuster does not have any shares yet, but will have them. Neither he nor Peter have sold shares, which can be confirmed by reading the SEC reports.
The 50 million issued for employee incentives will be used to encourage
salesman to make deals with affiliates. He mentioned that if a
salesman makes a deal with a radio station, he stands to make $1
million dollars from commissions and stock.
It was mentioned that when the company reports positive revenues,
it will probably get the attention of the big investors. He agreed.
The fourth quarter ends on Nov. 30. The 10Q is made public on or
about Jan. 15, however he could report unaudited preliminary results
in Dec.
We did not get into how the Cen-1 monies were being utilized, but
for legal reasons, we don't believe he could answer those questions. But, he said that they
got their shares for around 7.5 cents and are probably going to hold till it is $1.00
He is intrigued with the recent deal that Living Social made with Clear Channel and would like Net Savings Link to share that exposure, and is working on a partner to try and do so.
(This statement was written by Russ49, with input from MWito and FamilyGuy)
