*AV* -- Anyone want to buy a shell company? They could probably do better by subscribing to RadarView<GGG>
I am getting inundated with free online casino junk mail because I accidentally on purpose double clicked on an ad. This got me to thinking about a few stocks we joked about in the past here, SBET and USAG. Well, both are in the tanker, making our USAG scam comments by throwing in a equally "viable" alternative, SBET) hilarious today. Both stocks went nowhere fast, turned out to be big losers, and prove that online gambling was a pathetic investment, at least for these companies. It also proved that rockets to the moon usually crash and burn. The most hilarious thing though, is the SEC filings for USAG which is, at least, brutally truthful.
June 16, 1999
USA GROWTH INC (USAG)
Quarterly Report (SEC form 10QSB)
MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Plan of Operation
The Company engages in research, either by itself and/or through the use of independent consultants) (who may have to agree to receive stock of the Company in payment for their services in lieu of cash), to determine what type of business can be established by a new venture which would have potentially high profits. The Company's management has not retained any independent consultants, as the management of the Company has established numerous contacts which, on an ongoing basis, can lead to inquiries from potential acquisition contacts. However, management is currently considering retaining independent consultants to help analyze its current business strategy with a view towards restructuring or reorganizing the Company. In the event consultants are retained, it is intended that their compensation, whether in restricted securities of the Company or otherwise, will be based on the fair market value of the Company's stock and the fair market value of such services calculated on an arms-length basis.
Results of Operations
The Company is a development stage company and as of April 30, 1999 had not generated any operating revenue.
The Company's only source of revenue since inception has been certificate of deposit interest income, dividends from money market funds and interest from money market mutual funds with an approximate yield of 5% per annum. The Company maintains its cash balance in a financial institution. The balance is insured by the Federal Deposit Insurance Corporation ("FDIC") up to $100,000. At April 30, 1999 the Company's cash balance was $8,938 of which $8,938 is insured by the FDIC. The remaining funds of $396,030 is invested in uninsured money market mutual funds which invests in government securities. The Company had a net loss of $2,544 for the three months ended April 30, 1999 as compared to a net loss of $15,880 for the three months ended April 30, 1998.
Selling, general and administrative expenses during the three months ended April 30, 1999 were $7,043 as compared to $21,029 for the three months ended April 30, 1998, a decrease of $13,986. Selling, general and administrative expenses, primarily consisted of professional (legal and accounting), transfer agent and filing fees and expenses related to investigating business opportunities.
Management believes that inflation and changing prices will have minimal effect of operations.
Liquidity and Capital Resources
The Company has had no material operations and, as of April 30, 1999, the Company had working capital of $405,068. The Company had no liabilities as of April 30, 1999. Stockholders equity increased from $402,155 for the fiscal year ended July 31, 1998 to $406,218 for the nine months ended April 30, 1999, which represents a net gain of $4,063 for the nine months.
The Company has no present outside sources of liquidity. In the event the Company determines that its present capital is not adequate for a future acquisition, the Company may arrange for outside financing and/or may do a public offering or private placement of its securities.
The Company's operations are not effected by the Y2K problem. |
