For those of you that do not know me I would like to introduce myself,,, I am Steve K mentioned by Cliff in the last post, AKA Pluvia1 from the AOL boards,,, I have been "THE" bear regarding TLTK since last spring when it traded between 6-9 3/4. If you dig deep enough you will find my posts here on SI although I forget how I was registered then,,,
1. Discovered MCI service outage to TLTK customers. I first to report it first to confirm it. Tom Mills lied to me about it initially and I have not trusted him since.
2. Refuted and found to be false the 500-600 employees posters claimed Hi Rim as having.
3. Questioned the corporate structure (holding company/subsidiary) that allows Hi Rim to keep from providing full disclosure, the structure allows reporting on a consolidated balance sheet, and fails to detail important details of Hi Rim expenditures. I predicted a scenario ripe for unethical padding of pockets by Hi Rim officials which was later confirmed by the bonus structure and payment of 180k in "consulting fees" to Mills wife.
4. I indicated that the SEC investigation and State Grand Jury Investigation were a problem, which is now obvious.
Here is a post I made in December of 96,,,,,
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Subj: Potential?
Date: 96-12-22 20:44:10 EST
From: Pluvia1
<<So you still think this might be a viable investment?>>
GSpurgetis,
As it stands now - no. Here's my snapshot analysis:
1. Unreliable revenue sources - not traditional LD customers instead mostly re-selling to re-sellers.
2. Slimming margins in the telco industry.
3. Zero management credibility.
4. Management can/is legally avoiding full accounting disclosure of Hi Rim through holding company structure -- this equals added risk considering historic Mills, (pad my pockets, conflict of interest), management style.
5. Management is legally raiding company till, padding pockets with bonuses & salaries.
6. Shareholder lawsuit and defense of Swan/Swan's wife and others (?) amount to sizable, unknown, potential legal fees.
A new board of directors could: Open up the books, make sure expenses & salaries are in line, eliminate conflicts of interest and eliminate bogus bonus structure. This would essentially keep peoples hands out of the till, gain shareholder confidence and management credibility, and most likely get more dollars to the bottom line. Furthermore, it may eliminate the shareholder suit.
It will not however solve the unreliable source of income and slimming margins problems. Although, I admit I have heard of plans offering potential solutions for these two problems.
Bottom line -- no new board and solution for lack of disclosure, officer accountability, I hear the death rattle,,, With it -- IMO, there is potential here.
Merry Christmas
Steve
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