NIAR Shareholder's Action Committee (SAC)
Forward from LS forum:
Subject: NIAR
I spoke with Tom A at NIAR today. Total number of shares
outstanding is now at about 50 million. The deal with ACL was
rescinded because the value of the assets that ACL brought to the
table had declined over 90% by the time that NIAR had these assets in
hand. Assets and liablities are still consistent with the numbers in
the 6 month earnings report from 6/96: debt of about $100,000 , and
assets around 2.5 million if i recall correctly. Thus, book value is
now around 5 cents per share, and the stock is selling at 60% under
book. The reason for terrible 1996 was the failure to bring in the
required financing to move Cypress island forward. With the financing
now in place, the company is looking forward to a successful and
profitable 1997, and the prior projections are back on target. They
plan to be aggressively marketing timeshare unitss on Cypress by mid
January, and hope to make several cents per share in 1997.
Considering we are trading under 2 cents, this translates into quite
an upside potential from here.
At this time, there is no definite plan to do a reverse split. The
company shares the concerns expressed on this forum about the
potential impact of a reverse split: I guess we'll have to wait and
see.
I figure that anyone who has wanted to sell will be completing
sales by year end, which means that buying could occur in a vacuum in
january, especially if the company announces more financing and that
they are moving forward with Cypress. Remember, they have a 5
million line of financing from a PN lender, more than enough to get
started, and another line from a Travelers, and one more being
finalized.
Tom A thinks the stock price is very undervalued here, and says
everyone he knows is buying all they can down here.
BTW: including my trading block, I bet our forum controls 10% or
more of NIAR.
Looking forward to a profitable 1997! TPT
Reply: TPT, as you know, the NIAR - SAC is in full swing. Very
shortly, I think we may want to put a director on that board. You
know what the numbers are only after 24 hours. I am so impressed
with this forum, I could just .... in my pants...just incredible.
I cannot even imagine what the future holds for us in NAIR and
in other ventures. TPT you got this one pegged. My objective is
to know where all 50m shares are. I am offended that they are
even considering a reverse split. I want to see earnings bring
up this stock instead...It is time we let them know...LS
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Lastly, Tom Arigoni (Head Consultant and Bottle Washer!) phoned me yesterday a told me that he wanted to organise a meeting with shareholders possibly mid January to discuss NIAR's future. This could be great timing for the SAC to voice its opinion and potentially arrange a coup!
Regards,
Paul
reply: Paul, we know where a lot of stock is now. Personally, I would
like to see some new rules added like if you own so many shares, say
100,000 that the week be reserved for a stockholder's convention and
that the week be part of the deal...That way we'd get a nice dividend
in the form of a free week in FLA...Nice time to have a convention
is coming soon...Getting Cold in these parts of the woods.
If you are holding shares in NIAR, let me know and we'll add you to
the SAC. The SAC gets all inside information....LS
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>I have decided to start a SAC (as Gayle so eloquently refers to it) so
>those people who hold NIAR and are planning to do so on a long
>term basis, let me know and come join our club. Maybe as a
>united group we can clean up some of the shanagans that NIAR
>appears to be playing.....JOIN NOW. Let the message be spread
>far, wide and clear that NIAR stockholders are uniting. Sound
>the drums, Blow the horns and man the battle stations, WE ARE GOING
>TO WAR. .... LS
=== COMMENT FROM THE WSE (Waaco Stock Exchange): We didn't know so many
shares were owned in your Forum (although I don't know what % that is ...
NIAR appears to be quite 'maasive' in share size these days?) We also
didn't mean to suggest that TPT's report, which we did not happen to see or
know had been disseminated, was faulty any more than our own original report
in the HSF was faulty (it relied directly on company information, which as
you know, was not only faulty but falsey <g>). That is a problem where
there are no independent professional analysts following a stock. Recently
the Forum has 'picked' a couple of stocks followed by Red Chip Review ... at
least we know a professional is following it, even if RCR has to be a bit
skewed towards wanting to see their focus stocks achieve.
That's perhaps why our commentary is interesting, because NIAR, after all,
is traded on the WSE, and it is in our portfolio. And at one time we put
our full collective weight behind it over at Waaco, in good faith, again
repeating and relying upon what we were told.
Now, you are forming a SAC (Shareholders Action Committee), and that is
exactly what we had hoped for, because no longer do shareholders empowered
by the internet and this form of inter and intra instant communications have
to 'take it any longer'. As you know, we popped up and literally STOPPED
the Reg 8 share flow into IMEA ... we threatened to call for the resignation
of their officers, etc., and they capitulated and locked up their stock. It
CAN be done ... and as a SAC you have tremendous power ... you CAN cause
whatever management changes you want ... and not just cosmetic, as in the
case of NIAR .... who's in charge now that half their officers just went out
the door?
You are to be congratulated. You are on the right track. However, LeRoy,
there is a need for a SAC to be as independent as possible, so it would be
useful if someone in your shareholders group would take up the
responsibility for moderating that SAC besides yourself. Sort of a
separation of church and state ... this helps it to have even more clout,
because then you are not limited to NIAR holders in your forum ... but our
holders can join and anyone with an internet connection can join.
You can have a powerful and IMMEDIATE voice ... if you have an attorney or
broker or other professional in the SAC, he can often help the SAC
communicate in forceful terms what the SAC wants. The point is: you can
see to it that the management plans are monitored, you can ask the
management to boot anyone calling the shots from the sidelines and you can
have a voice and say in any reverses, which in fact may be necessary, and
any commitments from the company not to go the Reg S dilution route in the
future. With honest, credible management (and if they are not there, then
you can help them hire someone and you can help them get acquired or
WHATEVER), the company can attract other forms of financing, IF NEEDED.
This is a good example of the best of SACs, which as you know, is not a
'cheering squad', although it can be if the shareholders feel management is
right on track ... it is a line of communication between shareholders and a
company which we have seen and shown can be a force, not just a bunch of
people sharing gripes! That's why it's called a Shareholders ACTION
Committee.
Go, Le Roy ... let us know to whom any NIAR holders we run across should
apply to get on that list!
reply: Gayle, you are absolutely correct. The internet brings to the
table a new way of having stockholder meetings and we are going to
let NIAR know in no uncertain terms that we want to be heard. I hope
to relinquish NIAR duties very shortly after our new NIAR-SAC BOD have
had a chance to talk about things. We are just in the forming stages.
BTW, this is a great time to join us if you already havn't. We do
have a good handle on the value of this company and it appears to be
very seriously undervalued. I am very confident of TPT's abilities.
Comment: TPT - We have influence of 4,199,500 shares at this
moment. Now we have just gotten the word out last night and this
is only 24 hours later. We are over 8% of total stock. I am
sure we are going to hear from more people as the word spreads..LS |
