IMEA Imagica Entertainment.
Very interseting company. Stock price holds steady. Here is some DD.
I am considering purchasing today. There are MM's short this stock and fills may be slow. Stay on yop of your broker if purchasing.
May 11, 1998
IMAGICA ENTERTAINMENT INC (IMEA)
Quarterly Report (SEC form 10QSB)
2. MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
Sales for the six months ended November 1997 were $ 624,946 reflecting a decline of $ 244,153 or 29% from the comparable period in fiscal 1997.
The Company believes this was due to working capital constraints and a
reduction in worker moral and efficiency due to the Companies having
filed for protection under Chapter 11 of the Federal Bankruptcy Code.
Gross profit for the six months ended November 30, 1997 increased by 14% to $476,274 from $418,429 for the comparable period in fiscal 1997. This was due to the Company being able to close unprofitable production facilities and eliminate certain contractual obligations due to the Chapter Eleven filing.
Selling and general administrative expenses (reflected as operating
expenses in the accompanying statements of operations). These expenses
were largely unchanged from the same period in fiscal 1997 except for
non-recurring items.
Interest Expense decreased from $65,856 in fiscal 1997 to $8,380 in the comparable quarter ended November 1997 due to the Chapter 11 filing.
Gross profit in the quarter ended November 1997 was a loss of ($37,883) compared to a loss of ($1,228,813) in the fiscal 1997 period. This was due to a reduction in the interest expense and non-recurring items in the prior period.
Liquidity and Capital Resources
The Company has experienced serious cash flow difficulties over several years. In April 1997 a group of dissident stockholders called a special meeting of the shareholders with the intent of taking control and thru management and capital input returning the Company to profitability. The existing management blocked that move by placing the Company in Chapter 11 bankruptcy. Petition was made by the dissident stockholders to the bankruptcy court to dismiss the dismiss the bankruptcy filing as unauthorized and turn over control to the dissident group which had received the majority vote at the special stockholders meeting. Instead the bankruptcy court remanded the matter to the Marion Count, State of Florida for determination. Until such time as this matter is resolved and until significant sources of outside capital have been obtained the future of survival of the Company is in extreme doubt.
On September 18, 1997 in Marion County Circuit Court, State of Florida,Judge Swiggart ruled that the Stockholder Meeting held on September 3, 1997 electing Braxton P. Jones and Mark Tishman directors was valid. The Board having elected Braxton Jones as Chairman and President directed him to take physical control of the Company on September 19, 1997.
For the complete 10Q
www4.edgar-online.com
This stock is very tight and combine the MM's shorts it may take off.
Joe PTG&LI !!! |
