It's Just My Humble Due Diligence Opinion (Part 1)
Jim, I've done some due diligence, and I wanted to fill you in on what I found. Before I do, I'll let you know that I could go about this in three ways. First, I could assume that you are a pretty intelligent guy, you are honest, you have a degree in Computer Sciences from Texas Wesleyan, and so on; or I could assume you are a smart guy but you are lying on your profile, or thirdly, I could assume you are really stupid. I'm going to choose the honest intelligent Computer Science guy and see where that takes me.
Everything that follows in the next several posts is my personal opinion, also known as IMHO, (in my humble opinion).
We're going to look at Cashco Management, OTC BB: CSHK. What do I have to go on? For starters, I have this thread and the people on it, I have the links on the thread, I have the Internet, and I have the company itself. Since it is a BB stock, I'm going to be cautious. We'll assume I have an investment club called Mr. Mighty Chicken and the Deputy Chickerati. The cover story is that I am a giant chicken from another planet, so I need help from a few humans. I like jokes, satire, and all that. You have a sense of humor, right?
I know that the company will tell me whatever they want, so here is my plan: I'll start my investigation elsewhere and I'll call the company last.
What do we have on the Internet? We have you and some other people that are high on the stock. We have a link to an investment report, another link to another investment report, and that's it.
Let's start with the first link, "stocks4tomorrow". Early on the thread, there are several referrals to this site, but I couldn't get on it last Saturday, so that's a dead end for now.
Next, we have "Global Penny Stocks",
pennystock.com.
Here we have a "special report" that was written for a fee. What do we have of value? The names of the principals of the company, address, etc., the names of the companies that CSHK is buying, and a few other pertinent facts. For now, I'm ignoring the financial data, since this guy George was paid to do the report. We make a note of the salient points in the report, and we go onto the Internet and search.
A search for information on Rhonda pulls up nothing. The report says she is a published author, etc., so that makes no sense. Maybe we will have better luck looking in Canada.
I called a Deputy Chickerati in Canada and asked for help.
He posted me back with this, it's from a pay site in Canada, but there is probably someone handy that can verify it. Here is the source of the report and the URL:
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
and here is the story. You need to read it.
Dimples Group Inc
DDD
Shares issued 8262895
1992-03-02 close $7.25
Thursday Mar 5 1992
Mr J.D. Elliott reports
The company requested a halt in trading on March 2 1992 in order to provide for orderly dissemination of news, news which appeared to the company was in the process of being disseminated in a misleading and disorderly basis by certain parties, including former disgruntled management of the company. The company has previously disclosed its legal proceedings commenced against members of former management including Anthony R. Boyden and Rhonda Maxwell. These proceedings relate generally to financial improprieties and negligent mismanagement on the parts of Boyden and Maxwell and their partner Dr A. Steinberg, while the company's Ontario subsidiary was under their control. Litigation originally began with an action commenced by the company against Boyden, in which the company obtained a court order securing its premises and the contents thereof, and prohibiting Boyden and Maxwell from entering. The order provided further that Boyden and Maxwell were restrained from discussing the affairs of the company and disparaging company management. Boyden and Maxwell have continued to conduct themselves in contravention of this order and, among other lawsuits commenced against them, proceedings are being commenced related to contempt of court.
In September 1991, Boyden pleaded guilty to, and was convicted on a charge of counselling to commit murder, a charge unrelated to the affairs of Dimples. Bail conditions were granted to Boyden and he has since been awaiting sentencing for that conviction.
In December 1991, Boyden was charged with uttering death threats as against J. Douglas Elliott, the chairman of the company and Robert G. Reid, formerly the company's managing director, corporate finance and financial public relations. Mr Elliott was called, amongst others, on behalf of the crown attorney's office, to give evidence in respect of that charge at Boyden's bail hearing. Mr Elliott was cross examined by counsel for Boyden on collateral matters. At the conclusion of this hearing, Boyden's bail was revoked and he was committed to jail. Boyden is currently awaiting trial on these new charges - uttering death threats. Boyden is scheduled to be sentenced for his conviction of the offence of counselling to commit murder on March 10.
In February 1992, upon a complaint by Boyden and Maxwell to authorities, Mr Elliott was charged with giving what is alleged to have been false evidence as to certain collateral matters on Boyden's bail hearing. Mr Elliott has advised the board of directors that Boyden and Maxwell themselves gave false evidence at the bail hearing, and that he has concluded that Boyden's evidence in support of his complaint is most likely false as well. Mr Elliott has instructed counsel to report his findings to the police and to lodge a formal complaint against Boyden and Maxwell.
Mr Elliott has advised the board that he is on the record as denying all allegations of any wrongdoing whatsoever, having taken the position that these allegations are frivolous, malicious, vexatious and abusive and that he will vigorously defend all such accusations. Criminal counsel has been retained, the charge against Mr Elliott has been reviewed and counsel has been instructed to take steps to quash proceedings against Mr Elliott. Mr Elliott is of the opinion that the complaint alleged by Mr Boyden and the steps taken by the policing authorities pursuant thereto, constitute an abuse of process. General counsel has been retained to consider appropriate responding proceedings against Mr Boyden and the policing authorities.
The board of directors are of the opinion that these proceedings are personal between Mr Boyden and Mr Elliott and are not material to the business of the company and do not represent any impediment to the company's operations and Mr Elliott's ability to carry on his responsibilities.
The company has settled its legal proceedings with Dilbagh S. Gujral et al. Pursuant to the terms of this settlement, 100,000 escrow shares have been transferred from Gujral to Robert G. Reid, subject to regulatory approval. The transfer will not result in a change of control. Gujral has applied to the VSE for cancellation of 50,000 escrow shares registered in his name. Gujral has been issued 50,000 shares of the company....
(c) Copyright 1998 Canjex Publishing Ltd.
canada-stockwatch.com
Now, Jim, let's not jump to conclusions. There could be a perfectly logical explanation for this, am I right? We will keep an even head, and remember that it's just my own opinion. |
