Read the SB-1 that was filed and check out the background of the controlling shareholder - The CEO/COB. Then go down to the Greek connection and the insider trading activity.
What you have here is gang that up to now has not been able to shoot straight. The only thing they were able to do is come up with a LONWorks compatible card reader(mostly from Motorola technology) and write a software program to accomodate an "open" technology concept that Echelon (ELON) is promoting. Their level of operation according to some of the current and former dealers and Lucent Technology experts I have spoken with is of a primary nature and could be duplicated at will by any of a number serious security apparatus suppliers. The interest generated to date has been promulgated by the low cost to enable someone looking to experiment with this LONWorks technology and evaluate its potential in the market place should they choose to enter it. The component which sells for about less than $10 when purchased in volume, is programmed by ALYA and embedded in a neuron chip by Motorola and now Toshiba, because Motorola dropped the item and the program from their WSSD operation.
They have been scratching around for the past two years picking up operating capital by selling cheap quick 144 shares, pumping up the market price so these supporters can cash in the chips and when the hinted at great deals fail to materialize and the stock drops back into the low 30 cent range pull the scam over again.
If you go to EDGAR and read the SB-1 and the Price Waterhouse comments and notes you'll get a very clear picture of what this gang is all about. A careful reading of this thread from its inception will delineate the type of supporters they have. A trip over to the Raging Bull thread will reveal the clones. I choose to look at them as clowns, because if I took half of what they print as having any serious knowledgeable content, I would be sent off to the funny farm.
Why have an Audit? They apparently had hoped to get by the new OTC-BB reporting requirements and qualify by submitting it in lieu of a 15c2-11 filing and not lose trading status. Since the Audit had been completed well before the July 1, submission date for a SB-1, there can be basically two reason that I could see for the delay. One was that they hoped to get a private placement of funds by some of the people who had recently expressed interest in the product and then meet the filing deadline and have a live interest to show in the filing who had put serious money on the line. The other which I hope has no validity is that they knew exactly what would happen to the market price once the probability of becoming a pink sheet company became known. Since prior to this announcement the stock had been pumped up from the 35-37 cent trading range in the early part of the year to between 65 and 87 1/2 cents just before they dropped the pink sheet bomb, it would seem that those close to company knew what was coming and had the opportunity to dump their shares on the suckers who bought into the stories you will see posted on the two threads I mentioned earlier.
What was the tip off about what was to come? It is no longer available on Yahoo, but back in December of 1998 one of the 144 share sellers had posted his 144 and dated it for Jun 1999. It was in June 1999 that that sale was effected.
Now that they have been able to get the stock back down, and this as you indicate may not be the bottom once the stock does get to the pink sheets, they will probably revert to selling the cheap shares to their favorite friends and at the appointed time pump it up and dump it again. Most interesting now is the latest story circulating about financing. You have a recently filed SB-1, the next to the lowest class of filing a public company can make and still trade on the OTC-BB, offering 5 million shares at $1.00 a share and now followed by a more recent story, supposedly eminating from IR, about a mysterious individual investor who is prepared to buy $5 million of common stock at $1.50 a share. This is supposed to be announced any day, despite the fact that the shares are trading at 35 cents and as you point out in just a few days will have no really recognized public market other than the pink sheets.
You tell me whose nuts. |
