Jake: ask about the missing $20 million.
I hope you get to stop by the NYC office soon to see how things are going there.
I have tons of questions for Ira, including those I have listed in previous posts regarding the strange-looking financials. More odd things about the financials struck me as odd today.
Total assets for the six months ending June 30, 1997 (Brad, Post #132) are listed as $1,634,784.26 (excluding property, equipment, and "other assets", which add about $260,000 more; $1,265,854.14 of the total is presumably the six month year to date earnings. That's what I was taught in accounting class, anyway. So the company, without counting the earnings, had assets of apparently about $600,000 on June 30.
Around May 1, the company came to market. I presume from Cheryl's initial post that they issued a total of 20 million shares at the time. I presume from the stock's chart that the shares were offered at about $1 per share. This would have generated $20 million for the company.
First question to ask Ira: What happened to the $20 million? It disappeared completely between May 1 and June 30??? In a month and a half? What did they do with the money? How could $20 million in cash not be considered an asset?
Cheryl, you know this stock better than anyone. Perhaps you could explain where the $20 million went? Maybe I'm missing something, but I think the point should be raised.
Another question: why is there $8,290 listed as "total long-term liabilities"? I would think it would be more, given the number of office leases they must have. If they don't count office leases, if it's a loan or something, than that is my next question for Ira: Why doesn't a company making $1 million in six months pay off $8,000 in long-term debt? It would be a cheap way to help promote the stock: hey, no long-term debt! Look! Instead it lingers...
Next question for Ira: if the asset value was correct, i.e., about $600,000 besides the earnings, how little of their own stock do they own? Can't be much. I have trouble buying into a company that won't buy its own stock.
Next question for Ira, a pointed one: Why do you keep lying to, and deliberately misleading us? And no, I'm not "going negative", I am simply looking back at things he has said.
Best example:
Brad post #1005, in which he said:
<<<<Hi Engine! Ira told me straight out that he already has the money for this acquisition. He didn't hesitate.>>>>
This was posted two days AFTER the letter of intent was signed, in which FAMH said the deal would be for cash and stock. Ira knew this when he talked to Brad, but he claimed he already had the money. "Didn't hesitate" to claim that. The new stock's been issued already? Wow, news to me.
Cheryl's first post mentioned that the company had "no plans to issue more stock" in the near future. I'm sure she got that from the company. Yet stock has been issued since then, and is about to be issued again.
One of the press releases, as I have pointed out, lists Ira being interviewed on a Chicago radio station that doesn't exist. Another mentions a promotional CD-ROM that was supposed to be distributed. Does anyone have it?
Did the Miami office open in November without anyone noticing?
Whatever happened to the Tech Support acquistion? Does anyone have a copy of that letter of intent? They can close a $65 million deal in eight days, but the $4.5 million one takes months? Something's wrong here.
And this gem, from Post #1208, regarding the investors packet:
<<<Richard, You are right! The first page, third paragraph, says, "The six offices already in existence are doing in excess of $10 million in sales per year.">>>
Oh really? When did that change? They keep telling us $8.5 million. By the way, I only count five offices (NYC, Houston, MO, Phoenix, Dallas) that they do placements out of. Well, if it's in an investors packet, it must be true.
I could go on and on, but I think you get the picture.
Also for Ira: how many millions of shares will be issued for the Myriad deal? I'd like to know how much mine will be diluted.
Finally: Why did they sign a letter of intent without knowing what the price would be? Talk about being painted in the corner! Like saying, "I'll buy that car, we can talk about what it will cost later."
Signing the letter, without having a price first, lets everyone know Myriad is for sale, and that the deal is far from final. Easy for another company to swoop in.
It's easy to blow all the above off as "being negative", I suppose. But I refuse to swallow these ridiculous numbers without questioning them first. I wish more people did. They might save themselves thousands of dollars. "Research" should quit consisting of asking Ira what he thinks. |
