FIASCO FACTORY
Jack Wen, President and CEO of the Company boasts in a press release issued on August 10, 1999, that "PCC Group's 16 years of sales and distribution history in computing-communication devises make it pre-eminently qualified and structured to provide the retail internet marketplace with quality consumer products." The following chronology of Wen led business failures somewhat contradict his assertions.
Fiasco # 1 - www.123CDC.com/flop (1998 - 1999)
Nine months have transpired since PCCG announced the launching of its web site. However, 10-Q filings for the periods ending on March 31 and June 30, 1999, notably fail to disclose any information that would allow investors to assess the scope of PCCG's role in the Internet economy. Lack of disclosure along with a smoke and mirror press campaign clearly signal that this .com play is a flop.
Fiasco # 2 - Tire Recycling Plant
In 1993, the Company commenced the construction of a tire recycling plant located in Dalian, Peoples Republic of China. The Dalian facility was designed to function based on a process developed in the early 1900's known as pyrolysis. Pyrolysis is the thermal decomposition of tires in an oxygen-deprived environment. After five years and a $3.1 million investment, the plant never functioned. In order to avoid a one time extraordinary write-off, and subsequent NASDAQ de-listing, the plant was sold, in what appears to be a bogus transaction, to an undisclosed buyer in exchange for a note receivable.
Fiasco # 3 - Chinese Investment House (1995 - 1998)
The Company purchased and sold highly speculative securities on margin in the aggregate of $60.7 million ($3.6 million in fiscal year 1995, $12.6 million in fiscal 1996, $12 million in fiscal 1997, and $32.4 million in the October through June 1998 period. In fiscal 1998, PCCG incurred losses related to this activity in the amount of $742,153. Furthermore, the securities portfolio was sold (?) in June 1998 to Bin Wen, father of Jack Wen, in exchange for a promissory note in the amount of $867,009.
Fiasco # 4 - Green Resources Corporation (1996 - 1998)
This company was established with the purpose of manufacturing and distributing paints, varnishes and other chemical products in Asia.
Green Resources never became an operating entity and folded in early 1998.
Fiasco # 5 - PCC Multimedia Products, Inc. (1992-1994)
PCCM manufactured and marketed multimedia hardware and software products under the Media Resources brand. Specifically, this company sold multimedia add-on kits and produced two multimedia software titles. Media Resources products fared poorly. PCCM ceased to operate in 1994.
Fiasco # 6 - Nationwide Distribution Chain (1989-1993)
During the early 1990's, the Company established a national network of microcomputer distribution centers. However, competition from better managed companies forced PCCG to close, in 1993, its five regional branches. Distribution centers were located in Des Plaines, Illinois, Fremont California, Piscataway, New Jersey, Richardson Texas and Redmond, Washington.
Fiasco # 7 - PC Craft Microcomputers (1989-1993)
At one point in time, this division generated 15% of PCCG's revenues.
It manufactured and distributed PC Craft brand microcomputers. Squeezed out of the market in mid-1993 by craftier competitors.
Fiasco # 8 - Prominent Computers, Inc. (1992-1993)
A direct sales computer manufacturer that aimed to compete with Dell and Gateway with its Prominent brand microcomputer products. Out muscled in less than two years.
Fiasco # 9 - Intelligent Hardware Solutions (1992-1993)
This division manufactured and sold symmetrical multi-processor machines under the IHS label. Its products were no match to established brand names.
Fiasco # 10 - Government Sales Division (1992-1993)
In 1992, PCCG acquired a majority interest in a Chantilly, Virgina- based company that specialized in selling microcomputers to government agencies. In the following year, PCCG sold its interest to Rita Wen, a sister of Jack Wen.
Fiasco # 11 - Apparel Company (1991-1992)
PCCG established an apparel company that principally sold T-shirts and related products. Subsequently, this company was sold to Tina Wen, a sister of Jack Wen.
Its no wonder that PCCG's shares have plunged in value from $9.00 to $3 1/2. |
