I go away for a few days and look at what happens. Great news for 2 days.
Yet the stock stays flat to sideways. Up a little… then a brick wall. Someone is selling
all the shares you'd like to buy at $0.33. Complete ignorance of the many great
announcements or so you would believe.
Many hundred's of thousands of shares have been bought today, like so many other good
news days at the Ask. Where are these shares coming from? The PP
investors stepping on the Ask? Random daytraders settling out for no gain?
Disinterested investors finally getting out after long wait? After the abundance of so
much good news? Hard to believe any of the above. Happens with too much regularity
on and after the posting of great news.
Listed below are the amount of shares issued as per various times and sources but mostly
from the 10K and the transfer agent…
Corporate Stock Transfer, Inc., 303-595-3300
Estimated 2/1/98, 28,000,000
Estimated 10/1/98, 57,000,000
As per 10K 12/31/99 64,971,638
The above number is in the balance Sheet portion of the 10K
As per 10K 3/30/99 76,078,966
The above number is listed in the 10K as the shares outstanding as of
the date of the 10K, 3/30/99 .
CST 3/3/99 89,323,825
CST 3/24/99 93,000,066
How can there be 93 million at this date and only 76 million end of
March as per the 10K?
CST 4/14/99 93,290,066
CST 4/30/99 95,025,898
An increase of almost 2,000,000 shares in just the past few
weeks.
Aside from the 10K now indicating 114,000,000 shares authorized, (please don't confuse with
issued,) against the backdrop of what is supposedly known to be 100,000,000 authorized
shares, fully a 14% differential, there are obvious conflicts.
While many here have automatically gone forward and assumed 100,000,000 shares to be
outstanding for valuation purposes, reality is quite different. On numerous occasions
various shareholders have been told by thread members who had spoken to someone at
TSIG that the number of outstanding shares is substantially less than what has been
written in the 10K, or from the records at the Transfer Agents office.
If that were the only conflict we might be able to write off the differentials.
But unfortunately, in the face of so much great news, it doesn't stop there.
Furthermore, while it is somewhat comforting to assume 100,000,000 shares, the worst
case scenario, what comfort can any of us take from the continued conflicts in supposed
public information. Is there a corporate credibility problem here? Does using
100,000,000 shares really give us confidence so that tomorrow we won't wake up and find
out that there was board meeting 2 months ago and there are now 400,000,000 million
shares authorized?
There are real curiosities…
1. If all arrangements for the PP were made last year, and all option agreements
were accounted for in the VSI Plan, then why does the issued number of shares continue
to grow as per the transfer agent?
2. Where are they?
3. Are these shares being sold into the float?
4. If so, is the company selling these shares into the float?
5. If so, and not the company, then who is selling these shares?
6. Are more $0.15 options being converted into new shares and then sold into
the float at $0.33 for more than a 100% profit?
7. If so will half of these profits obtained from shareholders be re-lent to the company
in exchange for more $0.15 options?
8. What will happen to the other half? As if we couldn't figure that out. LOL
These are just some of the questions that will be put before counsel, unless of course
someone here has the answers.
And believe it or not these are the innocent questions that might have legit answers.
Not answers we shareholders would like, but legit just the same.
If what I've presented to you here turns out to be true, are there any of you
who would defend these actions?
SC
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