TO ALL: Well, NOW I have something NEW to worry about!!! Do I sound like an old hen??
Just received the Companies Annual Report and Proxy Statement:
First the Bad News::
1. Under COMPLIANCE in the Proxy statement I see that not one, not two but SEVERAL inside Persons bought and sold TAVA shares WITHOUT filing the proper forms ON A TIMELY basis with the SEC. Were I their auditor this would drive me BONKERS. I am not a securities attorney but I think this just opens them up to potential problems, also I think that it may effect future Registrations of stock with the SEC. Ie short form may not be available for couple of years. In any event, a serious oversight and indication of breakdown of internal controls.
2. Even more bothersome, to me at least, check out the stock option plan in the Proxy. Remember all those shares authorized LAST year for stock options?? Well NOT ONLY did they IMMEDIATELY issue ALL OF THEM but the Board authorized ANOTHER 1,000,000 shares NOT APPROVED BY SHAREHOLDERS and issued something over 400,000 of THESE. I find this INCONCEIVABLE, I have never seen anything like this happen before. NOW they want us to APPROVE another 2,000,000 shares (I presume that includes the 1,000,000 they did on their own) and you can bet your bottom dollar that they will all be immediately issued out to officers predominately as their employment contracts are renewed. HELLO, has anyone remember the MAJOR problem of this company ---- To many outstanding shares ie DILUTION?
Now the Good News:
Looks as though Jenkins and team have done a great operational job and if you read the Presidents Letter you will see that what I have said for a very long time CUSTOMER CONTACTS THATS THE KEY is true. Jenkins talks about NEW LINES OF POST Y2K business EVOLVING from their NEW customer relationships. In my judgement his letter indicates a high degree of confidence that REVENUE will NOT SLACKEN after Y2K ends.
Overall, while I am pleased with his results I am not pleased with the above mentioned items. The officers received already a great number of options and since the share value has not appreciably increased (in fact decreased since last year) I am of the immediate frame of mind to vote AGAINST increasing OPTIONABLE shares. However, I am willing to listen to reason from all of you. So what do the rest of you think. JDN |
