rebuttal still rings hollow without real support.
stock price decline in 2013 was the accountability being applied to poor results. difference between poor performance and purposely misleading. it takes very little faith to connect the derailment in 2013 with the third party supplier issues. the company simply can not sell product that doesnt exist and/or is offspec. when they are relying on sales/revenues from current production to finance/pay for future production/growth - it is objective to concur the company's plans were drastically and materially impacted by those issues.
one can argue they had poor oversight/controls over their suppliers. i would suggest most on here have no idea how manufacturing works from a QA/QC perspective. there were a handful of people running this company. they simply can not sit in a mfg facility and personally inspect every shipment. that isnt the way it works. you employ the controls/procedures, the supplier commits to them, you run the product, and if things go well - you go on faith and commitment from the supplier that things will continue. the real issue appears to be the former packager could not scale up to meet increasing demand.
so - either the company is lying about all of that as well as new distributors/sales or they made some rookie mistakes and have overcome them. either way - if they are using social media as a means of disclosure - then it holds the same weight as a public filing. if they purposely mislead in those disclosures (be it social media or traditional filings/PRs) then they will be held accountable through legal means and/or SEC scrutiny/fines.
the mgmt/insiders have considerable salary deferred, interest free, and their long term compensation incentives are heavily and directly linked to actual sales. they have modest salaries (even though much of it has been deferred). that is not the model of a scam where a shell exists to enrich a few insiders.
the key guys/founders were marketers and an attorney. now they have a more traditional executive managing the business end. either the new model is working and they are dramatically increasing sales of the LTCG energy shots or they are blatantly misleading.
