Jens: I personally agree with your assessment on the "parallel run".
IMHO, every single shareholder who feels they know what has transpired, should have already written four(4) detailed letters of complaint. They should have been distributed to:
1) the Company
2) SEC
3) State Attorney General of Texas and the Securities Board/Commission
4) State Attorney General of the shareholder's resident state and their Securities Commission.
These government officials should have been pressed into action by a volume of complaints. Unfortunately many people are probably lax in this endeavor. Then there is the option of the company seeking prosecution....
Having waded through prosecution of a company officer for breech of fiduciary responsibility, and defrauding an employer, before I'm sensitive to what this entails.
First, the company has to be behind the action. What are the chances today?
Secondly, during the lengthy process of an "outside" action, what stops the bleeding of cash and possible continued mismanagement? It's doubtful the sole Director is going to be proactive and remove himself from management. Even so, is there any second tier management that can run things?
Regarding selling the company. I understood Myriad, essentially the same company today since FAMH didn't bring anything to the table, sold for 4.5 million (from the IRS) when the liabilities were 4.5 million or a zero net gain on the sale. Now the liabilities are reportedly 8 million with a negative cash flow, and negative stockholders' equity. What value should the honest businessman pay for FAMH? Ten times cash flow would be a great bonus for the buyer.<GG> What proceeds would be left for shareholders after paying off debts? Personally, when I look at this option, I see a great big brick wall with no return. I'm nevertheless open to another perspective.
A plausible "mid-term plan" is already formulated, prepared for action, and awaiting a Harris County, TX judge firing the starting gun. It should certainly entail some of what you truly seek and that I discussed above. Personally, I'd rather see the company's money used for this purpose instead of yours, if one can differentiate the two.
I see the key is gaining control over the company check book, stock records, and business. I only pray the records are not destroyed.
In the mean time, I believe shareholders should be very wary of pronouncements or retractions of position by management. It is a very common expectation to counter with almost anything you want to hear in order to retain position and control. You have a distinctive track record to lean upon.
Sheep .......wolf......... sheep's clothing........
Be alert to the nuances.
Best regards,
Bob |
