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Microcap & Penny Stocks : The Henley Group, Inc. (HNLY) undervalued growth company -- Ignore unavailable to you. Want to Upgrade?

To: creatix who wrote (1623)	7/14/1998 2:12:00 PM
From: Psycho Killer	Read Replies (1) \| Respond to of 2232

Creatix -- HNLY's website used to have a book value figure on it. (I'm was over 2 bucks. $2.88 springs to mind, but I'm going from memory here.) Also, Jeff Brommer, who formerly did some PR for HNLY, used to drop hints of book value increases to considerably higher numbers being just around the corner. I've never believed those book value numbers, at least in the sense that they never made sense as any indicator of tangible worth. Posting only a bottom-line book value numbers on the website -- and having Jeff Brommer promise higher book value in the near future -- struck me as misleading tactics. This is one reason I tend to distrust the company. Another is that there hasn't been any public disclosure of financial condition for over three years (counting HNLY as well as two previous names for the company). This includes every deal HNLY has made -- deals sometimes have been described as including "cash and stock" (MGRA and MC Technologies) or "warrants" (Meyerson), without any indication how much cash and stock or how many warrants are involved. HNLY also hasn't told the public anything about the qualifications or track records of its officers and directors. As far as I can tell, Daisy Campos (formerly Daisy Pons) -- who, at last look, was a director -- has been with the company through three or four name changes. The only other info I can find on her is that she used to be involved in running or owning a pet store, apparently with some relatives. Nothing I've been able to find gives any qualifications or track record for Daisy. Martin Swarzman, former head of the company, largest shareholder (and perhaps still driving force behind the company) appears to be the same Martin Swarzman who pulled a $1 million fraud on a bank in New York about a decade ago. (I don't know this for sure, but the indications are strong and the company never has denied it.) The prosecutors weren't sure what he did with the money, but thought Swarzman lost it on various different types of investments. That sounds an awful lot like what Martin Swarzman has done with HNLY and its predecessor companies. You can find a number of press releases from 3 or 4 years ago touting this acquisition or that one (in areas including diagnostic medical imaging, incontinence treatment centers, and internet companies), but no record of success -- only declining share prices and apparent financial failure. The third director (can't find his name at the moment) runs the Offshore Fund, a mutual fund based in one of the islands. Maybe there's nothing crooked going on at HNLY, but the company certainly has given shareholders no reason to trust management, let alone to expect good profits. Upcoming SEC filings (assuming HNLY actually makes such as filing, which it's been promising for a while now) ought to give a lot more insight into the company, for better or worse. -- Jim