The simple answer is that the guy is immature.
But to really figure out this mess, I think you need to dig into the history and walk a few miles in his shoes...
When IDLM was growing at an unbelievable rate, I believe he was approached by many people to take IDLM public via conventional routes. Those Wall Street types rubbed him the wrong way -- he had done the work, so why would he give away a big chuck of shares to those leeches? So what if they brought with them venture cap funding and the prospect of an IPO where he's sell a bunch of his shares and become absurdly rich? Why should those leeches share in his accomplishments?
So, when an alternative approach came along (reverse merger into a shell), he jumped at the opportunity. I don't think he realized that he was giving away 1/3 of his company for the decidedly mixed blessing of having to file correct SEC numbers and being subjected to SEC scrutiny, yet getting no capital for his company and no cash for his shares. Compounding the problem was that he tried to fix his error by concentrating more on his LLC. Given the incestuous nature of the public and private companies and given his inexperience and distrust of leeches, he was headed for a train wreck. Further compounding the problem was that his distrust for leeches (like legit accountants, talented lawyers, etc) led him to rely on others, whose advice was not sound.
After he realized his errors, he made a half-hearted attempt to fix things. He hired Haddock. He changed accountants. He got a new legal team (though they never appeared in filings). But he got bored with all the tedium and expense of fixing the mess he had made. And he got angrier and angrier at everyone around him.
So, you have a recipe for extreme frustration. Then add in what I believe to be an adolescent's inability to control his temper. It is easy to see how Haddock became the object of his frustration.
Is Frasier all the way clear of the SEC? Is he free to issue press releases? Or is he in SEC limbo (or worse)? I dunno. I really do not know. It could just be that he's angry with some shareholders. Or maybe he doesn't grasp the importance of the share price. Or maybe the SEC is blocking him.
OK, but why doesn't he at least do deals? You think Haddock wasn't aware that the Datpiff brand could be leveraged to the tune of millions and millions in the cannabis sector? I can assure you that he WAS aware of it, if only because I myself told him about this possibility. And in the process of that conversation I learned that the guy was many, many steps ahead of me. So, he knew that millions were to be had. And Frasier knows it to this day. So, why hasn't anything gotten done?
It is all about control, fear of being exploited, immaturity, uncertainty about his own management skills, distain for rules, etc. Sometimes this complex of issues keeps him from doing "no-brainer" deals. If IDLM grows, then he has to manage that growth and he has to delegate. If he does new deals with outsiders, they might exploit him. And he pulls moves where he accepts term and then changes them, not realizing how anathema that would be to the other party. Chalk that up to immaturity? I dunno. Certainly Frasier doesn't see the need to play by any rules...
Often the end product is slower revenue growth and an adversarial relationship with everyone, including shareholders. But I don't think he intrinsically is opposed to shareholders. He genuinely likes some shareholders. And he realizes that his aberrant behavior has caused big investment losses for folks whose main fault is that they believed in him. That does weigh on Frasier.
Look, we have 3 ways to win here: (1) a group comes through and runs IDLM stock way up because they know that Frasier would never dilute into a run and because the float is small and tight, (2) Frasier sells either the whole company or his stake in it, or (3) Frasier matures and learns to deal with his issues. There are indeed some signs of (3), but not enough to be very hopeful. I am not going to discuss (2), other than to say that I have reason to believe that this is more likely than some believe -- and at the same time to clarify that I don't know of anything in the works right now. And I suppose that (1) by itself would be a lame reason to keep holding (absent specific knowledge of upcoming manipulation).
And meanwhile, IDLM keeps getting stronger and stronger. I am totally convinced of that. Given that yesterday was tax day, I'll confess to having had some long-term IDLM cap losses on my return. But I also waited past the wash date and bought them all back (at a lower price). The bottom line is that I am not going to turn my back on this stock. Not at 3c. Not even at 10c. I can afford to wait and I believe that is the smart course, so that is what I am going to do.
Wadi
