kendal, Thanks for the advice....but,
You must have not read this board for very long. I have presented a great deal of substantive information about the financial dealings of Camelot and the track records of it's principal stockholder and CEO. I truly believe that the character of a corporations officers, and a historical view of their capabilities as evidenced by past performance is absolutely germaine to understanding the potential of the company. After all bankruptsy records are filled with companys that had what could have been a viable concept or product, but were mismanaged into the ground by their less than adequate officers.
My comments in this case, do reflect personal feelings, but they also shed light on some character issues that could be important in considering whether it might be appropriate to avoid investment in this company.
The last quarter report is something that has been discussed here ad infinitum and ad nauseum. But just to recap, you really need to check as to where the supposed profits came from. The were not from sales of any goods or services, they were from a one time deal for European distribution rights for Digiphone, without which there would have been huge numbers written in RED.
Even this distribution rights deal is somewhat suspect, it was made between Camelot and a comapny called Meteor, which just so happens is now owned by DW (Marsha, I wonder if the purchase of Meteor was what the 1.8 million loan was for??). A couple of interestings facts...Camelot had been searching for a distributor in Europe because two previous deals had fallen through. Of course income from these deals had been reported on previous qurterly reports to give the false impression of decent profit/loss statements. This would allow people like your self to view quartely reports showing positive indications for three or more months, even though no funds for these deals was ever recieved, and in the absence of these funds, there wer truly large losses! Anyway, they could find no takers. SO..DW bought a shell company in England, and struck a deal for SEVEN times what any previous deal had been for...with himself of course. Within weeks the value of the deal was reduced by about 45% and the loss was shown as a write down. Who knows what the "loan stock" that the deal was based on is worth today. Possibly nothing, remember we are not talking cash here but rather loan stock in an obscure, tiny, European company. These securities, like any others have no fixed value!
My point is that you must do more than read the press releases or the first couple of paragraphs of the 10-K when dealing with financial information about Camelot. They tend to use a liberal dose of "smoke and mirrors" when producing financial documents.
Just be careful and read below the surface when gathering information about Camelot, lest you join the large group of investors that have lost big time on Camelot. |
