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Microcap & Penny Stocks : HDST Headstrong Group Inc -- Ignore unavailable to you. Want to Upgrade?

To: dusty who wrote (287)	6/16/1998 10:23:00 PM
From: Bill Hayes	Read Replies (1) \| Respond to of 389

Not absolutely a bad thing...many companies have management that have no vested interest in the company; however in penny stocks it unusual to have a management staff with no vested interest. Scares me a little because their financial health is not directly affected by the price of the stock. Bill

To: dusty who wrote (287)	6/16/1998 10:58:00 PM
From: JohnO	Respond to of 389

Having management own a good percentage of the stock is a sign of support on their part. The support includes the monies invested which in turn means they have a financial commitment in the company. They will be more willing to work to make the company prosper to increase the value of their investment. Not having a stake in the company shows lack of support. In the case of HDST management sold all of their shares when the stock was in the $5 range. They made a substanial profit at that time. Friedman the exCEO has been charged in civil proceedings of wrongfully take excessive expenses while he headed HDST over the last few years. With HDST now Malik is running the show. The company owes over 1 million to creditors. This shows a lack of commitment on the part of management to better control the company. As a result of management not doing their job HDST is now searching for someone to take them over and steer them in the proper direction. Or maybe just to get this monkey of the back of Malik so he can't be held liable for the debt he allowed to occur over the years. They currently have no infrastructure to properly advance their products on the market. New management is needed to allow HDST to develop and succeed. What will happen I don't know. A trustee has been appointed by the courts to run HDST because the current management was unable to do so properly. The trustee runs the operation not HDST mangement. Whatever the trustee wants he gets until the court says otherwise. In the last month HDST has distributed two releases and neither has reached the press. They can't even do this properly. You have taken a lot of your own time to find clients for HDST. If they were so concerned why didn't they do it themselves. No trade shows have they gone to in over 2 years. Trade shows are where they can really show their wares to the buyers on the open market. They were invited to have their helmet investigated by Consumer Reort Magazine. They failed to get it to them in time for the initial report. This doesn't show me good management. If management had a financial stake in HDST a lot of this problems never would have happend. Even when the stock was at .01 no one at HDST bought any stock. The only ones who did was spectulators like ourselves. This tells me that HDST management has NO faith in the company. Our only hope is for a new management team to takeover and reverse the path the current management has taken HDST. With that said how will the new managemnt team if there is to be one do this? A reverse split will raise shareholder value. That is if they can then show profitable numbers or the sound forcast of the same. The new management team will have substanial write-offs due to the substanials losses HDST has amassed over the years. To get the benifit of these losses for tax purposes they need to keep HDST a float for I believe 3 years. This is the saving grace for a debt ridden company like HDST to a new management team and investors. Currently HDST is bringing in about $125,000 each month. This figure is the breakeven point for HDST. Management has shown they aren't willing or able to attempt to better this figure. It all goes back to the fact they don't have a financial commitmnet in the comapny. Malik has said if a new team comes on board and I go. That is okay with me as I can go in a different direction with my life. That doesn't show any commitment at all on the part of Malik towards HDST. Several years ago his financial commitment was sold in the stock he held and he's been taking up space and has taken HDST down the tubes. He made a substancial profit and is smiling all the way to the bank. Lets hope the new team comes into the picture real soon and quickly restarts a comapnay who happens to have a fine product that the public wants. At the current price this stock real cheap and the upside is substantial with a strong new team on board. A new team will have a substanial investment in HDST and they will WORK to greatly improve their investment and the investment of the shareholders. Okay I'm getting off the soap box now. Have a good one. John I apologize for all the spelling errors.