I've been quietly lurking for a while but I have to say I am very disappointed
with the proforma. All of you know that I am a long term supporter of
this company and card carrying member of the FAMHily. After 7 months
I sold my holdings in FAMH last week for the simple reason that the
share issuance seems to be increasing and there hasn't been any accounting
for them. The last total I heard was 53MM... a very long cry from the
original 19MM I heard when I first joined up. In light of this it makes
the share buyback look like a complete joke. Why even bother to buy
back shares when you issue them faster than you are buying them back?
You can argue that they are restricted but it still effects EPS the
same as if they weren't, which ultimately effects the value of the
stock.
I strongly believe in the company but I will not own any shares until
the day that I see an accounting of all of the shares issued, and also
receive a promise that shareholders will be notified by press release
each time new shares are issued... or else receive a commitment from
the company not to issue more shares. If the company had stated the
issuance and the purpose for it each time as we went along I could
forgive this since it would let me know it was worth it.
A stock swap, such as has been proposed, is quite simply nothing more
than a reverse split. Maybe the issuance of warrants will help keep
current shareholders happy, but I suspect that the price will still
react the same way. What's really the point though when the shares
continue to be printed? Soon the company will simply be in the same
boat. I strongly believe we would have been over $1 by now if the
outstanding shares hadn't increased.
Anyway, given that a solid supporter and long time shareholder like me
could be shaken convinced me that others would likely be feeling the
same, and I had to bail simply on the grounds of investor sentiment
if nothing else. I can always buy back later if it looks like the
company has it's act together. For now, my money is in a company with
better earnings, a stock buyback, NO new shares being issued except
on a carefully mapped out plan available to shareolders, a very small
float, and audited financials. Perhaps I'll be back someday as a shareholder,
but for now I am a lurker...
Back to lurking... |
