Mshatter,
Got any BB crap over 5 bucks you're paid to hype?
Hey at least this is a reporting company ... except that they're late with their 1998 annual report:
From their NT 10-K filed on 1-Apr-1999:
1. Letter from independent auditor.
WEINSTEIN SPIRA & COMPANY, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
2200 FIVE GREENWAY PLAZA
HOUSTON, TX 77046
March 30, 1999
U.S. Securities and Exchange Commission
Washington, D.C. 20549
Re: National Equities Holdings, Inc.
Commission File No. 33-19992-LA
Gentlemen:
We will be unable to complete the audit of the financial statements of National Equities Holdings, Inc. (the Company) for the year ended December 31, 1998 by March 31, 1999.
Delays were encountered in the obtaining the independent reserve study, reconciling outstanding common stock and in valuing several investments.
We anticipate completing the audit prior to April 15, 1999.
Very truly yours,
WEINSTEIN SPIRA & COMPANY, P.C.
William F. Cominsky
WFC:an
But April 15 was two months ago, and there is still no filing. The last audited filing is their previous 10KSB, for the 1997 fiscal year, and dated 20-Nov-1998. The auditor's statement on 1997 sounded a bit ominous:
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 20 to the financial statements, the Company has sustained substantial operating losses and abandonment in its oil & gas operations which raises substantial doubt about its ability to continue as a going concern. Management's plans concerning this
matter are also discussed in note 20. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
As discussed in Note 21 to the financial statements, on June 16, 1998, the Company filed a lawsuit against a Director, stockholder, and related parties alleging mismanagement and other allegations. Additionally, it was determined that Convertible Debentures had been issued but not recorded in the Company's records.
Their most recent unaudited filing is the 10Q for the period ended September 30, 1998. In addition to the ongoing legal proceedings, there is still the issue regarding the copmany's ability to continue as a going concern:
NOTE 2: Going Concern:
The nine months ended September 30, 1998 continued a period of losses in NEHI's oil and natural gas operations. In addition, a substantial write-down of oil and natural gas reserves was taken for impairment, abandonment and lease expirations. Oil and natural gas production steadily decreased during the year in the Company's producing wells. This cycle of increasing operating losses has raised concerns regarding the Company's ability to continue as a going concern. Management has taken steps to overcome these negative trends by acquiring interests in two limited partnerships, one of which is a licensee of a patent, which is pending, for a down-hole drilling tool known as a "rotary steerable device" (the "Device"). Management has also entered into farm-in agreements in West Virginia, which based upon independent reserve evaluations performed in April, 1998, are believed to contain substantial oil and natural gas reserves. Despite these efforts, the Company is presently unable to honor its obligations to pay for certain services, which have been provided to the Company during the previous two fiscal years and through the nine months ended September 30, 1998, and is currently unable to pay its debts as they come due.
Maybe the action on Friday had something to do with their annual meeting: The Annual Meeting of Stockholders of National Equities Holdings, Inc. (the "Company") will be held at the Sheraton Hotel, Intercontinental Airport, Houston, Texas, at 9:30 a.m., Houston City time, on Friday, June 11, 1999
Check out the complete filing at free-edgar.com use "National Equities" as the search key.
The stock price is consistent with the company's financial state as indicated in their SEC filings:
bigcharts.com
Surely there must be some better oil-related investments than this one.
Best Regards,
John Sladek |
