Larry -
Would you consider the standard for any internet based company to be a British Virgin Island incorporated company?
BVI is a tax haven for companies that don't want to adhere to certain countries' laws. That's my take. Why else be there? Go check the incorporation of Yahoo, CMGI, or any of the other companies that IMOT lists in its news and claim that they are 'similar to.' I would assume none of the other corporations are even close to that tropical climate (all U.S. incorporated). What recourse on assets would shareholders EVER have?
It isn't difficult to incorporate in the U.S. Why bother going another route - especially if the grand plan is Chinese market domination with hundreds of millions in revenues. The trading grand plan will always be 'We're applying for a NASDAQ big board listing...blah blah blah.' Don't hold your breath. Not only has IMOT not incorporated in the U.S.. though taking a U.S. listing, they take the bottom of the barrel. OTC shell, NON-REPORTING. There is no way to confirm shares outstanding, financials, etc. All this is VERY relevant and should be part of any sound business plan. More important than spouting off about huge growth and increased market share and focusing on share price appreciation when they supposedly made $4,000 in six months (not confirmed by audited statements). IMOT will not be able to get any serious attention from institutional investors until great steps are made - Yahoo is a far cry, even another ball park from this playing field. You're in the criminals back yard.
Other than that, the ONLY reason to go public is to raise funds. I haven't gone in too much DD, but I haven't seen any 'underwriting' in the BB stock situation. Private placements happen, but with insider stock is issued at .01 sold at market.... Go figure. Sick profits, Larry. Imagine, when insiders peel off stock at $5 - $10, they paid pennies and put it back in for more stock. Going public at this level is a sad case for benefits of the shareholders.
Please let me know what you think. I actually had to think through the St. Paddy's haze to write this out. I'm very comfortable with IMOT as a short and would really like to know how you feel if you are long.
Regards, John |
