Gator, here is an open letter (e-mail) to MDIH management......
.For those who wish to send their own e-mail in order to reinforce this idea or communicate their own, here is the e-mail address: kpcfo@mediadropin.com
Mr Saferin & Mr Przysiecki,
You may recall my speaking to you recently on the future prospects of MDIH and I acknowledge receipt of your investor's package. Since I doubt very much that you, or anyone else at MDIH, follow the various posts about your Company on the SI Board, I have taken the liberty to send you copies of two of my recent posts.
As part owners of MDIH, we have become very concerned at the lack of efforts on the part of management and Company officers to maximize share value for the benefit of the shareholders, as it is their fiduciary duty to do. In fact several part-owners/shareholders have reached the conclusion that the Company could not care less about the value of its shares or the feelings of its share holders.
This is not my view yet, but this matter should be addressed without further delay. Another feeling I share is that you need to hire a competent PR/IR Company to promote your/our business. As a professional investor, I have dealt with a number of such people and can wholeheartedly recommend Veritas (James Neil, ph# 800-773 7317), who have done a great job for ZSUN. Please, note that I do not benefit whatsoever from making this recommendation.
Lastly, you should not delay further the reverse split, since this is an issue misunderstood by most investors and its anticipation is currently depressing the stock. It would be best, in my opinion to get it over with as soon as possible, so that the stock has a fair chance to reach its correct market value with the help of a competent PR/IR firm.
I intend to publish this e-mail in the form of an open letter to management on the MDIH thread on SI and would be pleased to publish your reply, should I receive one.
Thank you for your cooperation in this matter.
Sincerely,
F. Goelo
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To: Jeffrey L. Henken (1100 )
From: Francois Goelo Thursday, Mar 25 1999 10:39AM ET
Reply # of 1141
Jeffrey, this is a re-post, in reply to a comment on REVERSE SPLITS...
MakeMoney, relax! With all due respect to your experience, you're incorrect...
Not all companies go down the tube when they happen to have a reverse split, provided, as I have earlier stated, the Company is fundamentally sound and has positive revenues and a sensible Business Plan, there is no proverbial kiss of death. On the contrary, it may well fortify the Company.
I have reviewed the link previously given and narrowed it to the essential. This guy is actually proving you wrong, not me. Show me how his analysis is incorrect and "pick it to death" if you so wish.
napeague.com
Regards, F. Goelo + + +
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To: Raymond F. Ball, Jr. (1119 )
From: Francois Goelo Thursday, Mar 25 1999 4:35PM ET
Reply # of 1141
Raymond, reverse split for MDIH, the sooner, the better. Here is why...
I believe the perception you describe will be changed by the shear quantity of future reverse splits coming up, so that Companies can remain listed.
As a result of the ensuing publicity, the investing public will become aware that it is not necessarily a fatal stigma or flaw to have a reverse split.
In the case of MDIH, for example, my guess would be that it is mostly owned by seasoned investors (Gator for example) who have run the figures beforehand and concluded that the Company was grossly undervalued. To these people, a reverse split should make no difference, since the figures will still add up to the same results.
If the Company (MDIH) has:
1) positive earnings, say EPS of 22 cents to be conservative.
2) a PE of less than 3, when it should be at least 20
3) on that basis a price of .22 x 20 = $4.40/share
4) a current market value of 62 cents or seven times less than it is worth
5) a great business plan with the Millennium boost around the corner
6) no competition to speak of and a management that has so far well executed the business plan,
Then MDIH could not possibly suffer from a reverse split.
On the contrary, since that very perspective is probably depressing the stock, the sooner it happens, the better. Actually, within 2 days of being announced, I am willing to bet the stock will double from present levels.
Major Shortcoming: MDIH management has so far failed to take the interest of its shareholders into account and to market itself adequately to the investing public. Once it hires a skillful PR/IR firm, and Veritas which promotes ZSUN comes to mind, the Company and its investors will never look back, since the its business has excellent potential.
As soon as I get a chance, I will report on my phone conversation with the CFO a while back and the investor's package I received. Also, remember, quarterly results are nearly upon us and I hope for a good surprise.
Regards, F. Goelo + + +
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