I finally dumped this one. I guess I was taken in by all the promotional advertising. But, even if they have the most incredible find, I realize the Mr. Guidi is making tons of money at the expense of the shareholder's of Indo Pacific. Even if he lands a gusher on one of these properties, it can never make up the fact that he gets rights on a tract of land for Indo Pacific, then he organizes another company and transfers a huge chunk of those rights-(land rights that he promotes as being of great value); to his newly organized companies. Then when he organizes the new company he gets cheap founder's stock and he grants himself huge amounts of low priced stock options in the new company that can be exercised by him at any time. Bottom line is that he has made something between $20 million and $100 million in profits by acting in the above manner (through new company founder's stock and low priced options). The problem is this technique is being used on what were originally acquired as Indo-Pacific held land rights.
Bottom line is this money comes from the other shareholder's of Indo Pacific Energy. Therefore, I have lost faith in him as a business founder. Since he has continued to pursue these techniques of wealth accumulation for himself from the first time I heard of this company, I actually feel like a fool that I held out so long.
To put it simply, he is an outstanding promoter, but he has crossed the line into what many, probably most investors might consider unethical behavior. If his companies were listed on a major exchange in the US such as the AMEX or NYSE, it is possible that this behavior might also be investigated as being illegal.
For those who wish to stay invested, I wish them luck.
PS. If you want to get into a cheap energy play with millions of acres in the Asian region, I suggest you invest in a small company called Titan Energy Corp. Pink Sheets "TANC". About 10 million shares outstanding and selling for less than $1.50, it has the 100% rights on 13 million acres of land in Australia. Land that has over 20 major anomolies that could be huge oil sites. It also is working with a major developer to get several exploration wells drilled. The management doesn't manipulate these rights by creating new companies. |
