Jim,
I don't think, either, that Ira would be "flatly falsifying figures," as you put it, as much as I love the alliteration. <g>
I do, however, think that the pattern of deception from FAMH is well-established by now. Everything they say they will do, from issuing press releases to opening offices, takes longer than they promise. Does anyone here REALLY believe they will see audited financials on Feb. 2?
Their press release today is a case in point. It turns out that Myriad has only audited sales of 45 million dollars, not the 60 million figure they kept pumping to us. The 60 million is only a projection from "new contracts," whenever they might take effect. Ira did say on the conference call that only $38 million was in "long-term contracts". I don't know when the other $22 million is set to expire, but apparently it's soon.
Points papered over in the press release:
1) 2.5 million shares to be issued in stock -- based on what price? last week? next week? next month? Could this be preferred stock?
Doesn't say.
2) Cash --- HOW MUCH?
3) Assumption of debt --- HOW MUCH?
4) Borrowing $25 million from a "European financial concern" --- He can't even name the lender? And is the fact that FAMH would borrow more than the company is worth (post-merger!) not a warning bell?
Unless Myriad is worth about $20 million, which begs the question of how they will pay for it.
A blizzard of posts a few weeks ago told me that "sensitive issues" prevented Ira from telling anyone the details of the deal. What's the excuse now, since the deal is done? Personally, since the '97 audit won't cover this deal, I think Ira will wait to give Myriad details until the last possible moment, like next year, when this year's audit comes out.
Per the press release, the audit on Myriad is done. Why not release it?
If it's such a great deal, why not explain it, let folks applaud, and watch the stock go up? Very curious.
Is it any wonder the stock is falling? |
