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Gold/Mining/Energy : Valu-Net Corp (VNE on ASE - was Faymar) -- Ignore unavailable to you. Want to Upgrade?

To: hugh thorne who wrote (770)	2/24/1999 10:41:00 AM
From: Ian@SI	Read Replies (2) \| Respond to of 974

HT, Where in the financial statement did you find any cash on hand that allowed you to calculate a book value of 35¢? Or are you presuming that all funds from a PP which hasn't yet been concluded might be applied to turning VNE into a going concern? If so, did you look at VNE's expenses? Or do you really believe the PP will close. By the way, the PP shares are being purchased at a 25% discount to the nominal price, so if the PP were to act as a floor, that number would be about 68¢. Are any of the following expenses normal, reasonable or to be expected by a legitimate, development stage company? Professional fees 105,848 Shareholder relations 115,362 Advertising and promotion 590,618 Commission on stock sales 68,087 Interest and bank charges 221,663 Write-off of deferred charges 259,942 Write-off of goodwill 420,114 Bad debts 1,937,861 Note the Interest and Bank Charges: But the bank loan is: Bank indebtedness (note 4) 118,310 Paying 221,000 on a 118000 loan. Hmmm, who's getting the interest? How could a legitimate company write off nearly $2M of bad debts? ... or did they need some way of balancing the $2M of revenue for which there doesn't seem to be any indication that any income taxes might have been paid? There doesn't seem to be any evidence that the money received from the PP has been used to further minority shareholder interests. Rather, looking at the expenses, the company's prime business seems to be the issuance of stock, its advertising and promotion, and commissions paid. More has been spent on those items than on staff to develop a product. Hmmm, it would make an honest investor wonder, now wouldn't it? Have a good day, Ian.