DUE DILIGENCE turned out GOOD!!!
Please read the entire memorandum.
Number Alerted : 36
Action: BUY
Symbol: Pinksheet: EXPH
O/S 503m
Float 73m
Share structure verified today by TA, Guardian Transfer out of Plantation,
Florida
This issue meets our criteria in all respects, unnoticed, good management,
verifiable and/or ongoing business operations and plans.
The float is a bit larger than one I would normally alert, but as I said in
THE SITUATION ROOM when stating my alert criteria, stronger components of
the issue being investigated are allowed to offset weak areas. This one
more than qualifies, as you will soon read.
This issue is so hidden, literally hiding in plain view.
Yesterday, I looked at the company from a surface point of view and was
very impressed. I decided to contact the CEO, J.D. Brown, and make some
inquiries. It was well worth the nearly hour that he spent with me via
telephone.
Expo Holdings was formed as a result of a reverse merger, the surviving
entity I am about to outline has great revenues and profits and is now known
as EXPH.
Folks, let me invite you to go and take a look at the EXPH news releases.
I will not post them here, no need.
While you are reviewing the Pinksheets site, doing your dd, take a moment
and verify that they are fully reporting to Pinksheets, its all there for
you to review.
They fully report their financials to Pinksheets, they are planning to get
up to date and file a form 10, but that is months off and is not their
greatest priority at this time, according to Brown.
EXPH as you will see in the press releases, have some remarkable high
profile clients, NYSE:LOW Lowe's, Family Hardware, NYSE:RL Polo-Ralph
Lauren, to name a few. They are building from there. Brown told me they
have a another large deal signed with a major firm, he would not divulge.
Their mainstay is shelving systems that are very high quality and well
known in the industry. They are known for being the very best at what they
do.
They have operations, a plant, revenues, and impressive profits.
They employ nearly 50 folks, mostly full time.
The man I spoke with, CEO J. D. Brown, 37, is clean, no negative history,
in fact I discovered that he is former military. United States Air Force,
discharged honorably and has received notable recognition.
Mr. Brown is married and has two children.
Now, back to EXPH itself.
They have just hired an IR, the IR will be not be paid with shares, but
with cash, just like any other payable that EXPH has.
Brown studied IR's for several weeks, before deciding on what firm to sign,
the deal is now signed. I have good news, it is not Big Apple, he avoided
them after doing his dd.
The firm that he has chosen is well known for straight dealing, this is why
they were chosen, he told me that the one he chose is one of only a half
dozen that he considered that did not have a bad rep.
This is very good folks. No shares to promote.
This a great company that is trading way too low, everything appears to be
in order here, its simply a sleeper that is about to awake.
Now I am going to get you awake. I have this vital statistic share
information to report to you:
Let's look at the share structure,
503m outstanding
Here is a breakdown of the owners at present.
All of the shares about to be listed here are 144 restricted with another
year left to go before any restriction is lifted.
Owner Holdings
JD Brown, Chairman, CEO 100 million
Glenn Harrs, President 100 million
Karl Malone (The Mailman) 100 million
Nolan Ross, former shell owner 10-15 million
Float 73 million
Yes folks, you read correctly, that is Karl Malone, NBA star, business
man, and personal family friend of our CEO Brown.
The fact that Karl Malone has a huge 20% stake in the firm is not public
information just yet, I have revealed it to you here for the first time.
I spoke in depth with Brown about his new IR, I made the following
suggestions and he was very attentive during my recitation of sequence,
timing, and placement of certain information that will be released.
I advised him that the first thing the IR should do is introduce themselves
as the new IR, and immediately tell the public about the share structure.
Advise the public about their fantastic products and their high profile
clients, ignored to date.
I told him to let everyone know about the 144 restricted held by the three
individuals, and of course to mention that Karl Malone is a 20% shareholder
and interested party.
He agreed and told me that he would have the new IR transmit all the
discussed important info in their beginning releases.
I explained to him the importance of being transparent while in the Pinks,
and how being honest and upfront with the shareholders will prove out in
everyone's best interest. For instance, when I questioned him about future
uses of the nearly ½ billion shares left in the authorized, he told me that
they have no plans for any additional shares to be issued.
To put it another way folks, I told him how it had to be if he wanted your
undivided attention.
He is not going to reverse split it , he has been watching some of the
other r/s results, he knows that the share price suffers. The issue was r/s
when they took over the shell, no more splits. They won't need to. The
share price will rise to a more acceptable level once the IR begins its
assault.
He strongly raised valid points to convince me that he understand the
importance of no additional shares, his actions match his beliefs and
statements here folks, he is paying IR in cash, not shares. They have not
and will not pay vendors in shares.
He said there possibly could be a million shares devoted to some bonus plan
he wishes to set up for his employees, that will be it, and those shares
would be, if indeed issued, 144 restricted as well. No more shares
essentially.
The Company operates on their own cash flow from sales and operations, what
a refreshing fact. They do not need to sell shares.
Folks, this man has done his homework, he has been looking at the whole
Pinsksheet stock scenario and its attendant problems, he realizes that 90%
of the firms have no revenues and only dreams. He knows that promoters are
bad news, especially if they are paid in shares.
He was recently offered a deal that would have raised 1 million for EXPH by
a promoter using 504 stock and a email campaign, he turned them down.
I advise him if he sticks with this course, he will develop a large
following of savvy penny investors, and that as long as he remains honest
and keeps the shareholders continually informed, the share price will take
care of itself.
He understands this fully, and intends to follow the path outlined.
I have no idea how the actual security will react insofar as trading, it
has been dead and not noticed for so very long.
Ameritrade is not restricting it, that is a good thing. He told me that he
believes there are between 100-200 present shareholders.
Of course, those shareholders out there have no idea what is really going
on and who the shareholders are in this venture, we do. They may sell into
any bid strength, I don't know. We will have the float soon, so it really
doesn't matter.
Here is what I do know, and a strange coincidence.
As many of you know, I started accumulating IOGH in February, and amassed
nearly 1 million shares, I did this solely on one material fact, that NBA
star Dominique Wilkins was a board member and major shareholder.
All the other components for a good pick were missing, I hung my hat on
Wilkins having visible resources. You know the rest of the story, IOGH
turned out to one of my best plays ever.
Fact is folks, superstars open doors that are closed to the majority. Karl
Malone can open any door he wishes.
This is a much better play than IOGH, it has all the criteria, not one is
missing.
Folks, this is my report, you decide, I just don't know if it can get much
better than this one really.
Brown told me the IR is on board and they are preparing their entrance, I
am led to believe that they will begin their job of informing the public of
EXPH's sound business plans and already achieved successes within the next
couple of weeks.
IR is going to make a major announcement of some type on EXPH's behalf, one
that he could not share, due to legal matters and insider trading
regulations. I could care less about major announcements really, this one
is worthy of investment as it stands.
There are other details, however, this is more than enough information for
any reasonable person to begin their own dd and/or take a position.
Good luck and health to all, I truly appreciate your time to read this
message.
END ALERT
