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Anybody here placed an order?
Jacques: Very good, thoughtful, and IMHO, spot on, post!
Thanks.
So follow that reasoning out. Not much cash means either massive fraud or no real business or a combination. I suppoose one could find potential investors if there was huge fraud but a going concern because it's a one time hit to an otherwisw viable enterprise but if the moneys not there because there is no viable business- which I believe was your position- where would you find anyone to invest in an EGMI that didn't actually have a viable business model?
Your thesis seems weak to me.
Grampie,
As you say, they expect to be paid, so please explain how they would get paid if EGMI is worthless, as you claim.
Either there is a business there and the cash from that business or there isn't. If there is no business and hence no 12M in cash, why the heck would these Anderson fellows go to work for EGMI knowing they won't get paid?
Just a cursory look but it appears they are doing reasonable deals and not just liquidators.
I would not put too much stock in that report of 2 to 3 days. Not saying anything about Wicked Tomato but when one is depending upon a spoken conversation it is easy to misunderstand what the other person is trying to convey, particularly when one side is under the strictures that IR is operating under at present.
I believe we will, and sooner rather than later.
While this seems awful to those of us involved it's really just a blip on the screen and there are many, many potential new investors who will bid up the price once the audit opinion is reinstated and as long as the basic business model is intact.
They will be attracted for the same reasons we all were originally.
IMHO this may very well turn out to be a huge buying opportunity.
I often wished I had bought more at $.040 as I averaged up, and now I can!
Just have to keep your fingers crossed the biz model is intact, as it is a good one.
Howsmydrivingal: You are connecting another dot that doesn't exist. I am new to IHub, as before this little debacle I had never heard about it until that Pontiac guy posted something about this board on the Yahoo board. I've been a shareholder in EGMI for over a year and been buying since about $0.40/share.
Not that that is relevant on an anonymous board, but there you are. I am pretty sure I own more stock in this little company than most here and I have not sold any and in fact have added 30K since the debacle.
My advice to those posting and lurking here is to just chill. No use selling now as most of your value has been lost and this stock is not going to zero.
Just think for a moment. Have the large shareholders who have a line on the REAL situation, not the stupid speculation and dot connecting going on here and elsewhere, sold? Obviously they have not or EGMI would be trading for fractions of a cent per share. People are indeed being shook out but not the multi million share holders who KNOW the scoop.
Most of the speculation posted here is, IMHO, just BS and not connected to reality. Remember how certain many were on this board a week ago that Bally's was going to announce a buyout on3.15.10? Remember how all the "dots" just showed this was true??? All rank speculation and dot connecting.
When there is a vacuum something always rushes in to fill it and in this case it is rumors without any real foundation.
Lord Steinberg was not a crook or a fool and he bought huge amounts of this company in the last 6 months. You can take it to the bank that he wasn't swindled.
There will be news when there is news so go on vacation, or something but give it time to play out.
If I was a lawyer advising EGMI management I'd tell them to do just what they are, say NOTHING and get the statements redone.
Don't think you are a jerk, although "you" are just a disembodied cursor as far as I know so can't really say, and that's the point. lets not take postings here, or any other anonymous board, too seriously. Seems like you have done good research and maybe you post here before acting, who knows, but we are still all amateurs and there is much unseen here. It is easy to get carried away "connecting the dots" and end up, logically, in a place that makes no sense.
I think that is just what has happened here.
GLTA
Hey, a little rubbing is in order when pumping gets out of hand and must take a quick u turn.
However you dot connectors have,IMHO gone too far with this mish mash of information. I just fail to believe all this DD adds up to what you think it does. If First London was such a notorious fraud how did a man like Lord Steinberg get taken in so readily?
Surely he would have confirmed cash and he would not have believed a fraudulent account held in FL was real.
These threads are just too tenuous for me.
How's that for irony, someone who yesterday was giving "ammo" to the shorts is today trying to buck up the pumpers! It is a topsy turvy world out there!
must have lost your fear of providing ammo to the shorts, big time!
You are kidding, right? You are worried about pessimists providing ammo to shorts??? That's a real screamer, that is. In case you haven't noticed management seems to be doing just fine in keeping the old ammo supply filled!
And anyway, if you are so bullish and want to buy more why wouldn't you welcome the price being driven down further so you could buy cheaper? Makes NO sense at all.
EGMI is about as speculative as a stock can get and still be in existence and you are worried about negative posts! Now that's funny!
It has now been nearly 30 days since SEC stopped trading due to financial irregularities and other than a PR stating everything's pretty much ducky and will be re blessed by auditors- nada, zilch, nothing!
Now this is a small company with a VERY simple business.
They basically sell a few versions of a couple of products that they have custom manufactured and probably drop shipped as I've seen no indications of warehouses and inventory on the Balance Sheet.
They have, what, a dozen or so customers? They apparently have no actual office and only 10 or 11 employees, all of which seem to be VP or higher!
I could audit an operation like this in my sleep in less than a month so what gives? Berger and Mendoza look to be at least minimally competent, from what I've read, so I am not getting how this is still a black hole. This has got to be the worst problem in the history of this little company and it's killed the stock price and turned a very loyal group of shareholders into an insane mob out for managements blood (and rightly so) and yet Lee Cole et al are reacting like it's nothing.
And I'm also wondering when I look at the employee list who the heck actually does the in house accounting? Who gets the checks and deposits them and keeps track of payroll etc? Who takes calls and gets orders and passes them on to China and tracks shipping and.... There do not seem to be any employees that do anything but sell and "manage". Where are the Indians? Looks like all Chiefs to me and pretty lousy ones at that.
depends on what's happening with their other lines of business that are presently generating all their revenue. If they are indeed generating 12 to 14 cents a share and it keeps growing 30 to 40% a year, from whatever source, I'd guess we'll see much higher prices.
It all comes down to execution of the business plan.
You have to separate your feelings from your investment decisions as much as possible. We might all be mad at management right now and think there were many things they could have done differently to mitigate the damages over the last few months, but we all bought this little company because we believed in the business model and that, at least, appears to be intact.
Ask yourself, "wouldn't you buy this company at $0.40/share, warts and all, if you just discovered it today and you knew it's financials were basically sound and it had the earnings power we all thought?
I do not think there are many longs who would not pull the trigger at this price and I intend to average my price down further tomorrow.
Good luck to all.
Yes, I can hardly believe that they waited until half way through the trading day to release this. What gross negligence and possible duplicity.
The stockholders need to organize prior to the annual meeting to try and throw out the BOD if they will not appoint new management.
If the company is basically sound, as the press release indicates, then it has been grievously injured by management incompetence of the highest order and they need to go.
Anyone know how to get a copy of the bylaws?
Not much volume. Most seem to think EGMI will come back and isn't headed to zero. I am among these and sure hope we are right.
Just in case I've got a buy order in for $0.12 but don't expect it to fill.
They can, and will, be sued and likely successfully if they failed to catch fraud. If there is a cash account of any significance that they failed to verify, IMHO they are toast and their insurer will pay dearly. If there has been fraud this is probably the best source of funds for stock holders to recoup at least some of their losses.
lawsuits are often filed so that the complainant gets to conduct forced discovery of the defendant. This is what fleshes out the case and all the complainant needs to do initially is have a prima facie case that withstands summary judgment motion to dismiss. IMHO EGMI management has provided plenty of ammo for the case to go forward at least thru discovery.
It will take quite a while but might provide the only avenue for longs to ever find out what really has happened, particularly given managements propensity for silence in the face of ANYTHING!!!
Disclosure: much longer than I'd like to be
Lots of speculation about what is going on has led me to think about what would have to be true for the speculation to be correct.
There seems to be a fear that EGMI business was a sham, that the office move was a con and that the $12MM+ shown on the BS probably doesn't exist.
I am somewhat familiar with the audit process, having been through it with a private company as well as providing due diligence records for a buy out. The first thing any auditor does is confirm cash. Everything ties to cash and the idea that Berger and Mendoza has gone 3 years without confirming the existence of this much cash is just not credible. The cash must exist, or it did until very recently which means the sales occurred!
Secondly Lord Steinberg did not build a small one man betting shop into a multi-billion dollar operation while earning himself a HUGE fortune and his investors a compounded return of over 25%, by falling off the turnip truck! This man was smart, had integrity and knew the business inside and out. You can take that to the bank. A man like this is not going to get involved with what would be for him, a small time fraud. I also do not believe he would invest over $10,000,000 in a company like EGMI without KNOWING it was for real. He had the means and the knowledge to know if it was all a con and you can be sure he confirmed the numbers and sales before he spent his money and lent his considerable prestige to the company by becoming COB! This guy made his fortune in the gambling industry and in over 50 years in the industry he had to see EVERY con known to man. I just don't believe he got skunked by the managers of EGMI and there is NO WAY a guy like this is involved in shenanigans some suspect have occurred.
My personal opinion is that the main problem lies in the values carried on the books of the investments in Rosario et al and that these will be restated. I'd guess, and it's just a guess, that this info about a restatement leaked and was the cause of the short attack over the last couple of months and that the SEC stopped trading to protect shareholders from loss due to unequal knowledge until revised valuations could be arrived at.
A misstated cash account in the UK just could not account for the length of delay but valuing a minority position in a private or thinly traded public firm can be very tough.
JMHO. If EGMI drops under $0.40 when it opens I'll be a buyer unless another shoe drops prior.
Good luck to all.
So Kardon, interesting speculation but why do you think Bally auditors would apprise the SEC of the bank account error if they found it? Seems to me that this alone would be likely to lead to lawsuits. These deals are usually done under confidentiality agreements and to have the acquirer engineer a stop trading order in its (much smaller) preys stock by disclosing a confidence and then go on to negotiate a price with the board strikes me as pretty shady, and I'd guess it would be viewed so by many.
I'd love for you to be right, but....
Pontiac- I think I put up the post you referenced on Yahoo.
You found just what I was seeing. Actually makes me (grimly) slightly more optimistic as if investments are the problem then it means the cash is OK and the basic biz is still what we thought. I can live with the write down but if the sales are a sham we are truly dead meat.
Either way I just can't understand how the auditors and analysts missed all of this.