CAGI is a no brainer short. I wonder if anybody has bothered to read the 10SB.
sec.gov
The books are full of questionable stock transactions, the assets are primarily goodwill,
the income seems to be as much the result of these stock transactions as anything and
there are 43,800,000 shares outstanding with another 2,000,000 being issued as we
speak. Everything about this company calls for great caution. My gut feeling is that
NOTHING IS AS IT SEEMS. I cannot believe this company is worth $138
MILLION.. no sir not at all. This stock is just waiting for the hype to stop, then it will
begin its decent.
General. The Corporation's authorized capital stock consists of 110,000,000 shares of
Common Stock, no par value per share, and 40,000,000 shares of Preferred Stock,
par value $1.00 per share. As of September 1, 1998,the Corporation had 43,810,208
shares of Common Stock issued and outstanding and had 1,033 shareholders of record
and 200,000 shares of Preferred Stock - Series A issued to two shareholders of
record. In addition, there are outstanding warrants and options which were issued in
connection with the acquisition by the Corporation of PTT and Talidan options.
Each outstanding share of Series A Preferred Stock is entitled to ten votes per share,
not as a class, but along with the Common Stock. The Series A Preferred Stock is
convertible on May 18, 2000 into 2,000,000 shares of Common Stock or $2,000,000
worth of Common Stock based on the fair market value price per share of Common
Stock on May 18, 2000, whichever is greater. The Series A Preferred Stock becomes
convertible prior to May 18, 2000 if the closing market
price of the Corporation's Common Stock is above $2.00 per share on any day or the
Corporation declares a dividend on its Common Stock. The Series A Preferred Stock
has a preference over Common Shares in the event of a corporate liquidation. The
Series A Preferred Stock is not entitled to dividends. |
