EYSM - I haven't studied the company, but I did a quick overview of the company last week and here are a list of some thing that I found that I don't like:
1) I don't like that Scott Gallagher used one of his companies, US Biodefense Inc (now EYSM), to pay another one of his companies, FTS Group Inc, $1,500,000 back in April of 2008 for the purchase of Elysium Internet Inc.
2) I don't like that $1,000,000 went to a company located in Barbados in the form of a promissory Note for the purchase of two domain names from Smash Clicks Inc in June of 2008. EYSM has long ago defaulted on this promissory Note and the note can be converted into discounted shares.
3) I don't like that the CEO has 1,012,515,000 common shares and 270,000 preferred shares which can convert into 2,700,000,000 more common shares
4) I don't like that both the outstanding share count and the float increased by almost 1.7 billion in a 2 month period from July 1, 2010 to August 30, 2010 - shows you how fast this company is able to dilute when they chose.
5) I don't like that they lost a legal issue with Sandra Sawyer and are now required to pay Ms. Sawyer $225,000 plus fees none of which had been paid yet as of October 29, 2010.
6) I don't like that the company has an accrued deficit of $9,938,429.
7) I don't like that as of their last filing they had never posted a profitable month ever. And even if they do some day end up finally making money with their business they are so far behind in debts and other expenses that it will take them a very long time to ever catch up - if ever.
8) I don't like that they went and did another $1,000,000 promissory Note for the purchase of directory.com which can also be paid in shares and most likely will be since the company has no cash.
9) I don't like that they have a gagged TA
10) I don't like that I read a statement about the company wanting to raise $750,000 - $800,000 through share sales.
I know Gallagher said he talked all his debt holders into not doing any conversions until after April 15, 2011.
Even if the company doesn't start selling shares to raise capital between now and April 15, 2011 it still makes April 15, 2011 sort of like execution day for this company.
I don't trust the R/S comment, but at the very least I am very very sure that Gallagher will have to raise the A/S count over the current 5,150,000,000 some time this summer.
I personally am not buying the rosey financial projections Gallagher is throwing out there. He still has to pay millions of dollars in debts before the company can start actually become a profitable business and call me old fashioned, but I don't see how that will ever happen with the business he runs.
I think EYSM is doomed to end up like his first company, FTS Group Inc, trading in the triple zeroes, but even closer to $.0001 because of the much higher share count.
Scott Gallagher will probably eventually stop filing like he did with FTS Group Inc letting EYSM end up Caveat Emptor also.
He will probably one day take over another public shell and replay this whole thing all over again making a big purchase from his old company with his new company which will lead to him getting a big debt Note for himself and lots of shares. Then he'll repeat the whole process of over paying for domain names and owing people money that he won't end up being able to pay.
We'll see. Of course I could be wrong, but that's the impression I got when I took a quick over-view of the company.
Oh P.S. I rarely rarely ever use the word scam. I think I've used it for 4 or 5 companies ever. So no I'm not calling EYSM a scam. In my opinion it's a poorly run business that is doomed to fail. For the last 3 weeks though it's been a nice money play for penny stock investors. All money plays have an expiration date though. Main thing is - just don't fall in love with the company.
That is my opinion.
