For Those of you that can't get to AOL, I will paste LQQX's posts for you.
Subject: Re: Another Viewpoint
Date: 1/1/99 4:28 PM Eastern Standard Time
From: LQQX
Message-id: <19990101162842.11228.00005358@ng37.aol.com>
jmt via holloway writes:
<< 1) There are in fact 110M shares outstanding, 25M in the float >>
Agreed, but there will be a decrease in shares outstanding with the resolution of the lawsuit filed against ACQUEREN for misrepresentation of value upon theoretical liquidation of assets by 50%. From the financials:
<< The purchase agreement
provided for the issuance of 6,750,000 shares of Common Stock to the two largest shareholders of Acqueren...The Company is seeking actual damages in the amount of not less than $1,100,000, in addition to further relief which it may be entitled to. >>
This means that the shares filed will be adjusted by 50%, 1,000,000 restricted of which have not been issued yet and therefore won't be. ACQUEREN has already approached EDII with an agreement to this settlement, meaning 3,000,000 less shares outstanding.
<< 2) EDII paid 6M shares for the parcel of land from the Dror Trust. There was NO independant valuation done on the transaction. The trust is in the name of Dror's son. >>
The benefits to both parties are obvious. If the share price goes up, the trust benefits. If share price doesn't increase, the trust doesn't. EDII benefits from the guaranteed income from the land. There was nothing shady about this transaction. It is simply a part of laying foundation in the initial stages of a growing concern, and a way of creating another source of cash flow.
<< 3) The company continues to post losses. The 9/30/98 balance sheet does not look healthy. Most assets are in inventory and receivables. This is always a warning sign. >>
He forgot the land. A warning sign only if the company continues to post more and more losses. In this case it is exactly the opposite. The first two quarters incurred losses. The third quarter was profitable. The fourth quarter will be even more so with the inclusion of CRC. Look how far this company has come in less than a year. All of the negative posting on the entire Internet will not hold this company back.
<< 4) There are so many names we all recognize on many stock transactions. Elk international ( controlled by Dror's brother) had options for $2M shares at a price of 2 cents per share, which was exercised (and dumped during the hype) in June. They are then issued an additional 5M shares and 3.5M at 3 cents per share. >>
It's the cost of doing business as you lay groundwork. Nothing is free. There are those who will benefit initially from investing in any reliable company, just as we will holding long. It's the name of the game. From where else will cash materialize? Getting angry because someone made a profit on a penny stock gamble, no matter who they are, is to point fingers at the entire market system. The point to consider is whether or
not EDII will continue to grow and turn a profit as a result. I think yes.
<< There is too much in Item 7 to absorb. But I do believe Mr. Dror has been using shares as currency to develop longlasting friendships. >>
Not too much for me. And no, Daniel has been using shares to continue to build a small conglomerate, soon to be larger. I was watching an analyst on CNBC, talking about GE. He said if you only owned one stock in your mutual fund, why not GE? It is essentially a holding company. It controls 18 businesses, including drilling and finance, and trades at a P/E of 38 or 40. Daniel says he has yet to announce closing on UNLIMITED, and
has as many as seven letters of intent to announce short term. EDII isn't GE, but it also costs a hell of a lot less --- right now. The price reflects yearend selloff for tax purposes, and of course some disgruntled owners. But it also reflects almost as much buying and some scalping. It does not reflect the company buyback that will take effect as early as Monday. There are 10 to 15 million shares in the real float,
as there are about 10% that do not move and considered non-liquid, from the list of shareholders that EDII has.
<< What a piece of shit. To you bobby, ruskin, stylewriter and anyone else who assisted in attemting to inflate the stock price while related parties could profit at the expense of small shareholders. >>
Indicates a very impartial viewpoint from what has to be a non-shareholder. It makes me wonder about the agenda. There are those who would pump stocks, just to sell all at an increase, just as there are those who short and slam. I'm content to hold and see what transpires long term. I've said it before and will say it again. Don't let a stock wear out it's welcome in your portfolio. It weighs too heavily on your psyche, and simply isn't
worth it. There are other stocks you can move to. But financials are out on EDII, and you know what you're dealing with now. If you can read a balance sheet, you can see the positive direction this company is headed. In the beginning, do what's right for you in 1999.
LQQX
|
