Here is my response to Anti-Hype a poster on CyberWhispers that is really good and I like his posts.
~Without a doubt, this company has a history of failure. ~
Answer: Up until Oct 9, 1997 when Steven King step in with deal real money and deals you are exactly correct.
~ The real question is: Are their any historical holdovers still lingering around, or is this an entirely new company
with a fresh start? ~
Answer: Fresh just coming public Shareholder meeting in Feb to be announced and a name and ticker change. Arcon is now a subsidairy if Midland the final conclusion will take place at the share holder meeting. Which I will be attending at that time PLUS I am going to Dallas this Thursday myself.
~ There's more to this than just the name of the most recent acquisition and executive management
however. ~
Answer: Yes there is and this is only 6 days old and shareholder equity is $12.00 now just on the 360 Million to the balance sheet. Of course there is more to figuring the shareholder equity than just this asset.
~ In January, an announcement of new executive management was made. However, the company had also announced a new chairman and management back in September/October too, but this did not stop the company from yet another series of questionable acquisitions making one wonder if the rotten forces behind this company's failed past are really and truly gone for good. ~
Answer: You are right and I will not respond since this a mute point prior to Oct. 9, 1997
~ Yes, we have new executive management in place as of January, but are the same folks (major shareholders and multiple directors) who were ultimately responsible for having given us this rotten corporate history the same folks who are now presenting us with the Arcoenergy deal? ~
Answer: Nope the mangement has been just about been overhauled. Most of the BAD elements has been removed or resigned. If there is one please let me know since I do not know of a bad element from the past.
~ Remember the major shareholders pick the board of directors who are the ones who pick the management and
who are ultimately responsible for this new choice. ~
Answer: It is not that simple since Wayne Duke and Dan Fisher both own their companies when they were private
~ I don't know the answer to this question, but the errors in the recent Arconenergy announcements and unknown financial history for this new company does raise the question. ~
Answer: I agree with the spell check and the mis figures and lack of correction on the new release but I do not see where spell checker has any effect on share holder equity. I wish they would be more deliberate in there proof reading. As far as the financials go they are an operating business with assets already and trying to get the financials on a private company is next to impossible. I guess we will have to wait for the 8K and 10 K which should be out by the end of March.
~ Another concern is why Arconenergy would have selected MIDL for its corporate shell when you consider the history this shell has had. There are other shells to pick from with less of a "history". ~
Answer: Numerous reasons but I cannot nor will I get long winded. The structure of the stock for one and the existing locations MIDL has around the world. Since Oct. 1997 New Departure was brought in to pay the bills and clean up the shell and now has been sold back to Wayne Duke who likes being a private company. The ticker change and what not is to finish the cleaning up process.
~ None of these questions should be interpreted as a negative opinion of the viability of Arconenergy. It is just that MIDL has such a sorry history. ~
Answer: You are exactly correct however the stock structure and the savigs on IPO costs, Broker, account and legal fees, etc etc etc made MIDL very attractive. The bad reputation is in a way very good because only long investors would even think of buying this stock. Simple as that.
Anyway, here's the history...
Answer: Prior to the following all I can say is you are right and it stinks!!!
Aug. 1997 - MIDL announces company to acquire "Jet View Holdings". What happened to this one?
Answer: Could not produce audited financials to conclude the acquistion. Deal canceled
Sep. 1997 - MIDL announces company to acquire a "natural woods products" company. What happened to this one?
Answer: Could not produce audited financials to conclude the acquistion. Deal canceled
Sep. 1997 - MIDL announces Steven King, 29 years old, to become the new chairman of the board and director.
Answer: Deal maker that brings deals to the table to turn a negative company into a positive and profitable company. Never stays long just until a deal is found that is acceptable.
Sep. 1997 - MIDL announces company to acquire a "marine related consumer products" company. What happened to this one?
Answer: Could not produce audited financials to concluse the acquistion. Deal canceled
Sep. 1997 - MIDL announces plans for NASDAQ listing. What happened with this?
Answer: That is still in the making and they still have 8 months for that to be a reality. With each acquistion increasing shareholder equity it is very possible that can happen in the near future even though Steven King made that announcement and has since left shortly after making it. I believe Steven made that release because any acquistion at the time would improve share holder equity.
Oct. 1997 - acquired New Departure using series B preferred shares. MIDL also announces resignation of Steven King and cancellation of agreements to acquire other companies.
Answer: Exactly ... Steven's job was complete and time to move to the next harmed corporation. New Departure had 300M in projected revenues.
Oct. 1997 - MIDL's new board appoints Mr. Duke as Chairman/CEO/President, Mr. Marsik as Exec. VP, and Mr. Pierce as Secretary.
Answer: Changing some Management
Nov. 1997 - MIDL announces acquisition of Las Vegas restaurant/entertainment business with restricted stock
Answer; yes it was acquired to increase shareholder equity however apparentlythe shareholders did not like the diversification and they immediately sold it off.
Dec. 1997 - MIDL announces "sale" of Las Vegas restaurant/ entertainment business. Yet another co. disappears.
Answer: No it was sold into the shell of CNHH I found out later. However I bought into that stock because this casino has the same deal makers of the real world behind it. I know this sounds crazy but if you knew where Warren Buffet was going would you not invest on the success of that comapny. Now I am not implying Warren Buffet in any way just a hypothetical senario.
Dec. 1997 - Mr. Marsik (exec. VP) and Mr. Pierce (secretary) resign in light of civil litigation for activities in 1995-1996.
Answer: Believe that came as a shock to everyone including those gentleman however they are no longer with the company. New Departure & Midl was extrememly surprised to say the lease.
Jan. 1997 - MIDL announces "strategic alliance" with Industrial Clearinghouse, Inc. to bring more $millions$. What happened to this one?
Answer: That was Wayne Duke's old company and he bought the client base of his old company Clearing House into New Departure which he took with him when Mr. Duke bough back New Departure from MIDL recently.
~ Jan. 1997 - MIDL announces "sale" of New Departure co. Yet another lucrative acquisition disappears. ~
Answer: Exactly correct to make room for Arcon Energy which apparently has three times the share holder equity. Also Mr. Duke did not like being public one bit I believe and was extremely non informative. (I hated the guy and he was not friendly to shareholders)
Jan. 1997 - MIDL announces acquisition of Arcoenergy and more untold $millions$. Mr. Fisher becomes new chairman/CEO, Mr. Spriggs is president/COO, and Mr. McAndrew as senior VP.
Answer: Again Management change to over see the business operations. Arcon is Mr. Fisher's company when it was private. Now it is just a matter of time before all the divisions of Acron are transfer inot MIDL. Plus any acquistions that were in the make when Arcon was private.
About the series B preferred stock: According to SEC documents, the Series B Preferred Stock consisted of 149,259 shares, with each outstanding share (i) to be automatically converted into 150 shares of Common Stock on October 1, 1998, OR SOONER AT THE ELECTION OF THE HOLDER.
Answer: Only the Oct. 1997 8 K is current. All the previous filings are superceeded by that 8K. Please read my post on the share count and dilution I made on SI: Arcon Enery post number 186 which includes the return of the 70K of preferred for New Dearture putting the share count back to the Oct 1997 8K and the issurance of an additonal 70K for Arcon Energy. Again once New Departure came in everything prior except for what that 8K states is mute and canceled.
Again Anti-hype I appreciate your posts and I enjoy responding to a poster with solid negatives. Please do not change, you are a true asset to this site.
Thanks
GB |
