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Microcap & Penny Stocks : ETPI-Military Entertainment Enters Civilian Market -- Ignore unavailable to you. Want to Upgrade?

To: Kelly Igou who wrote (4275)	5/18/1999 11:38:00 AM
From: Toby Zidle	Respond to of 4767

Oh, I do wish Scoobey hadn't posted the real numbers. It's much easier to be an ostrich with one's head in the sand. Kelly, just a few comments on your post: Your item #1: <It gives the overall impression it was rushed out the door as soon as the auditor's findings became available, although it is still three months later than it needed to be.> Look again! The March, 1999 Balance Sheet figures are marked "unaudited". All the other financial tables are also clearly labelled "unaudited". At the end of your post, you note the "self-defeating environment" of traders getting out at 40 cents. As a long-term investor, I agree that this practice is very damaging to price appreciation potential of ETPI. But looking at the long-term price history of ETPI, trading the cycles is smart investing. Those guys are making money on ETPI. The rest of us aren't. If we were really into managing our portfolios for maximum return, we'd be trading ETPI on cycles, too. Otherwise, Kelly, I do pretty much agree with your assessments, though I'm not so optimistic on the interpretations of what you call "good news". And "Financing that was premised on the maintenance of a minimum stock price" scares the **** out of me. What are the consequences of failure to secure this financing? Here are some of the things that scare me about the current financials: 1. NEGATIVE Cash!!! 2. 100% increase in "Accounts Payable" and "Other Current Liabilities". 3. 50% increase in Long-Term Debt vs a 40% DECREASE in Total Shareholders Equity. 4. Financial comparisons are March '99 vs June '98. The Notes comment, "It is not a fair comparison due to the change in fiscal year structure to compare these quarter endings as our business is highly seasonal". A) Why was the fiscal year changed? What benefit is derived from this? B) It would have been entirely appropriate to add a third column for March '98 comparisons. More than 'appropriate'. The lack of March '98 comparisons reflects on the lack of communicative thought given to this report. A lack of competence? And, finally, to tie up one loose end: My earlier comments about Marcus being de facto spokesman for ETPI should not be taken as a slap against Marcus's integrity or his serious efforts to keep us informed. I am not doubting Marcus's intentions here for one second. However, Marcus has no obligation towards us. He can leave at any time. Other investors who have inferred that they had direct access to and information from management have quietly deserted the scene, e.g., PrefStock and Gator. I have to repeat that the ONLY reliable source of information from ETPI management is management itself! And this is not a knock on Marcus. It IS an indication of my disappointment in management for taking its shareholder communication responsibilities so cavalierly.