Well, I've decided to put my extra time (since I am no longer working O/T to cover my losses) to somewhat good use. I am currently working on putting together a case study of the red flags that should have tipped us off. I sometimes teach accounting classes and feel that this information needs to be disseminated. I may even send it to some MBA programs, including the one I graduated from. I am going back over looking at everything with a critical eye, and unfortunately, I can see flaws everywhere. I guess I, like almost everyone else, saw what we wanted to see, instead of the truth. Lesson learned as stated earlier.
Anyway, I have been going through my records and found the following -- I did listen to the GIFS conference call and figured I would post my notes. Perhaps there is something in there that someone can use for a class action or maybe those who didn't listen to the call can see what was discussed (or rather hyped). I took very detailed notes as I basically had the phone on speaker and typed what I felt was appropriate. It sure as heck sounded good at the time.
GIFS CONFERENCE CALL NOTES
bought 700 acre farm; has natural gas on it; considerable return
imxs - facilities re-opened by 2nd qtr in 1997; will be profitable acquisition
American Lift; manufactures elevators & lifts - profitable
gold mining; Miller mountain Mine - reopened due to technological growth;
extract gold for $180 an ounce; revenue - mid 2nd qtr or before, based on weather
financial service arena - primary revenue producer
Motor Sports Car Center - already 2 facilities under construction; revenue producing by
2nd qtr of 97; want to have 25 within the next year and a half; micro-hotels also; 90-120
days to construct one; NASCAR is hot;
saturation of about 200 units; will at least build 25 units; private placement of Motor
Sports possible;
Investor Relations:
Amex & Nasdaq small cap national exchange; more credible market
Interviewing Big Six Firm; year-end '96 audit will be by Big Six Firm
Earnings - '95 3 cents; 96 14 cents; 97 70 cents per share
Book Value - close to $7 per share;
Problem - dissemination of info - wall street shuns bulletin board stocks;
$1 million budget for Investor Relations in 1997
Print & Media advertising in 1997
National TV advertising in 1997
GIFS - International - operations in 14 countries; El Salvardor - $3 million added to bottom line; due to quota share in Latin America
Also, acquire various insurance agencies throughout U.S. in 1997
Auditors:
Will engage for a minimum of a review of the audit; if they have time, do the 10-K
Two more acquisitions for 1996, before year-end
Book Value - once adjusted, after change in accounting method; by or before 2nd qtr, 1997; could be 12 or 14 based on change in method and acquisitions; going from cash to accrual basis. Everything reflected in year-end audit;
Tough Question
Reason for concerned about price - fed up with bulletin board; need $3 share price
for AMEX; |
