Steve,
My position has been as follows:
Jay/John ran real low on cash and had to make some ugly calls -- namely to Tandem. Tandem asked all the obvious questions and this started this whole inquiry. John/Jay had to fess-up to the fact that they had not been handling matters appropriately (i.e. books.)
Tandem (or other creditor) demanded this re-audit. Tandem recognizing the mess, and the reality of it; has had ALTS on the market since. Tandem needed to shore-up its position in this scenario. Semi-passive boardmembers (5 in all) are all for a buyout/merger. Jay and John have little say in these matters, although they probably would like to hang around for any such merger/buyout.
They will fire John Low at the end of audit period.
This guy Bruce appears to be a walking chainsaw. His role is to get the company down to bare bones so that the company is viewed for what remains > current accounts and intellectual property. All the remaining areas of the company are seemingly expendable.
Otherwise, the revisited numbers for revenue will be down, but not by as much as many anticipate. The math won't allow for it... This will take a lot of the air out of the outstanding civil actions now in the various courts. In addition, John/Jay will not be around to discuss it. This will make any litigation very contracted. Also, PW will have to take a great deal of the blame -- making this plot even thicker.
Open Text has been mentioned (through deductive reasoning) as a possible buyer. They are aggressively seeking to expand their client list with limited capital. My source (a former EE) had informed me that officers of a Canadian software firm had supposedly visited Jay in San Diego in Sept/Oct. This may have been Jay's tentative efforts to place the company for sale before the shit hit the fan... This Canadian firm could have been there for any number of reasons -- I honestly don't know. The numbers going around ALTS office(s), at the time where $60/65 million.
There is simply no question in my mind that ALTS is up for sale, especially now that Tanna is toast. He was the one figure that, I feared, would demand a certain level of control in the new scheme (if any.)
Assuming the company reposts its numbers at 10/12% lower (as I see it.) The company would have gross sales of around $20 million -- combined with EB in beta, and a very lengthy list of well-established existing customers, and you should easily get $40-50 million. The lawsuits are they only "real" problem. Otherwise they could get more!
In final, I have three questions for you:
1) Provide me a short list of those companies (in similar situations) that went down to zero (or near zero) value (publicly held) -- as you stated? Companies with a long list of existing customers.
2) Who do you suppose bought the very large blocks of shares just before trading was halted?
3) Who will service/support the existing client base of customers?
I respectfully ask, I do not mean to be confrontational in my tone.
-JH |
