To the thread:
I know most of you don't care to discuss facts, so I will attempt to be brief.
LGOV owns 2/3 of XINMAO.
XINMAO had sales of about 1.4M for the year ending 3/31/99. This was about $500k or nearly 30% less than 1998.
Since LGOV owns 2/3 of XINMAO, LGOV's sales/revenues were around $900k.
Costs of sales were very close to sales, so there was a gross profit to LGOV of around $75k.
Now the management of LGOV has stated that they are fully staffed with two employees and two "outside service
providers". ( I wonder if the hypester is one of the two? )
These four people burn about $513k annually, even after the reductions in salary the hypester previously gloated about.
Just in salary.
$513k in salary for $75k in gross profit?
Don't forget about office rent. $4k per month for two people. No wonder Dan is available to answer the phones at almost any time, he is most likely lost in the office and looking for his desk.
Now we get to XINMAO. The people that generate the money for LGOV. There are reportedly 84 employees that make $46,000 annually. ALL OF THEM - INCLUSIVEAnyone that doesn't see a problem here?
Now for the good news.
In 1997/98 they lost $2,732,268.
Last year they only lost $1,095,991.
They only lost half as much in 1998/99 as 1997/98. They only sold half as much also.
Does that mean if they quadruple sales, they will quadruple losses?
One more minor point.
Outstanding shares increased from 179,635,655 in 1997/98 to 182,878,257 in 1998/99.
No one has a problem with the additional dilution?
Okay, one last point.
Total current liabilities: $5,237,826
Have fun,
Phil |
