To all:
I saw my handle mentioned three times in the last ten (or so) posts.
I have been quiet while awaiting developments, but since you asked, ponder this:
The balance sheet is still in the red by almost four million dollars.
Sales increased from $777K in first half 1999 to $8.5MM in first half 2000.
That's great, you might think.
But,
The gross profit dropped from $282K in1999 to $131K in 2000.
WHAT you might ask? Sales increased almost a thousand percent and the company lost more money? Over 100% more money? WHAT?
Not only that, the net loss for the first half of 2000 increased almost 100% also, from $479K in 1999 to $842K in 2000.
Again you might ask, WHAT?
Now, if I were a stockholder, I would be scratching my head, and thinking, what are these guys doing with my company?
Does anyone remember why the stock price of LGOV shot up so rapidly a few months ago?
It was the diesel oil deal, right?
Check this out:
On the oil sales, it cost LGOV $6.8MM to sell $6.7MM of oil.
WHAT a concerned shareholder would scream.
Not only all of this, but let's go back to 1997.
In 1997 LGOV lost $2.9MM on $2.5MM in sales.
In 1998 LGOV lost $ .7MM on $1.6MM in sales.
In 1999 LGOV lost $2.2MM on $1.8MM in sales.
In 2000 LGOV lost $842K on $8.5MM in sales.
So if we add all of this up, in the last four years LGOV has had sales of around $14.4MM and losses of
around $7MM, or almost half of the sales.
If LGOV increases sales to $28MM in the next five years, at the present rate, they will lose another $14MM.
WHAT the shareholders might ask? (The smart ones anyway) Does this mean our company is selling
goods for less than they cost?
Seems so.
Now for the good part:
Outstanding shares.
1997 Outstanding shares were 177MM
1998 Outstanding shares were 181MM
1999 Outstanding shares were 185MM
And,
Drum roll:
2000 Outstanding shares are 213MM.
Do you "investors" realize what this means?
When the company pays bills for services with shares, it dilutes your investment.
You are picking up the tab for this money losing company.
And do not forget, the total authorized shares are now 400MM.
Have fun,
Phil
P.S. Do any of you guys even try to read the companies filings?
Really?
Just wondering,
Phil |
