To: tonto who wrote (16197 ) 5/9/1998 3:17:00 PM From: John Fairbanks Read Replies (3) | Respond to of 27968
I've been quietly lurking for a while but I have to say I am very disappointed with the proforma. All of you know that I am a long term supporter of this company and card carrying member of the FAMHily. After 7 months I sold my holdings in FAMH last week for the simple reason that the share issuance seems to be increasing and there hasn't been any accounting for them. The last total I heard was 53MM... a very long cry from the original 19MM I heard when I first joined up. In light of this it makes the share buyback look like a complete joke. Why even bother to buy back shares when you issue them faster than you are buying them back? You can argue that they are restricted but it still effects EPS the same as if they weren't, which ultimately effects the value of the stock. I strongly believe in the company but I will not own any shares until the day that I see an accounting of all of the shares issued, and also receive a promise that shareholders will be notified by press release each time new shares are issued... or else receive a commitment from the company not to issue more shares. If the company had stated the issuance and the purpose for it each time as we went along I could forgive this since it would let me know it was worth it. A stock swap, such as has been proposed, is quite simply nothing more than a reverse split. Maybe the issuance of warrants will help keep current shareholders happy, but I suspect that the price will still react the same way. What's really the point though when the shares continue to be printed? Soon the company will simply be in the same boat. I strongly believe we would have been over $1 by now if the outstanding shares hadn't increased. Anyway, given that a solid supporter and long time shareholder like me could be shaken convinced me that others would likely be feeling the same, and I had to bail simply on the grounds of investor sentiment if nothing else. I can always buy back later if it looks like the company has it's act together. For now, my money is in a company with better earnings, a stock buyback, NO new shares being issued except on a carefully mapped out plan available to shareolders, a very small float, and audited financials. Perhaps I'll be back someday as a shareholder, but for now I am a lurker... Back to lurking...