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Net income is only from debt forgiveness, not from operations. Certainly not recurring income that you can hang your hat on. Most definitely not cash flow.
Speaking of numbers in the annual report, how do you like the number of over 3 million in compensation in exchange for a ton of dilution, a reverse split and then some more dilution.
Do you think any (honest) bum of the street could have done any worse than this slick management team?
I'd love to dissect the report with you page by page. I am curious what was so attractive about it. Was it the 10k in the bank or the $10m fake asset (deferred compensation)? Watch them reverse this into income soon to keep up the manufactured earnings.
The most humerous part of the annual report has to be the statement that they expect the Durant facility to be open by Q1 2010. Dear Mr Farmer, next time you delay filing your report to 15 days after the first quarter has closed, you should probably fact-check yourself.
I also noticed on the statement of cash flows that there still weren't any capital expenditures for the entire year. Considering you have been telling us since April 2009 that you will have to change the processing flow of the plant to utilize a more efficient feedstock, I am wondering how that will be accomplished without spending a dime?
Anyone checking the help wanted adds in and around Durant for 50-100 new jobs? Thought so...
But no worries, with 10k in the bank , you might make payroll for another week.
So we basically traded the float 2.5 times over today?
Alex, seeing that you still maintain your baseless prediction on the LNG plant, please give me a clear explanation and business rationale for how the LNG property that was given to creditors in exchange for the forgiveness of $50m in debt by EBOF over a year ago should somehow be returned to this company debt free.
I am sure the rest of the board would love to hear your tale, as well.
If you can't, I move have you banned from the board for mindless pumping, flat out lying, and therefore manipulation.
I don't mind positive people, but at least have a clear explanation that is somewhat grounded in reality.
This, of course, is such a surprise. The case was closed on March 24 and EVFN got bupkus. The company was turned over to its creditors just as anyone except for you and Alexander expected.
What I don't understand is how you now spin that as good news, given that you two dreamers expected that the LNG plant somehow came home to roost debt free.
Another piece of evidence that you guys are completely clueless pumpers.
Agreed.
It's a wild world in the pinks
It's amazing what you'll learn reading the message boards. These posters are all prodigous at market timing, always buying at the bottom and selling at the top.
Incredibly, they always know when to switch from dedicated longs to opportunistic shorts and quickly forget that they ever been longs.
They average down on a stock that loses 95% over 4 months but somehow are only down 5-10%.
Then there's my favorite, the guys that don't know how to read between the lines of a PR and those that pick one word out of a generic news item and spin it to kingdom come.
Another favorite are the dedicated longs that managed to pull out their money before the R/S and now act as though they always knew...
Maybe bankruptcy law is different in Belgium than it is in the United States, but your expectations for the April 9 date are ludicrous.
For your information, PNGX has already emerged from bankruptcy, and as expected, the company has been turned over to its creditors and the existing equity has been wiped out. This, by the way, is how 90% of all Chapter 11 filings turn out.
Your notion that the PNG assets would somehow revert to EVFN is probably one of the wildest theories I have heard on this message board. As a reminder, this company spun off the assets in satisfaction of about $50m in debt. The LNG plant was and is operating at break-even operating margins and predictably buckled under the ridiculous debt load. Hopefully, with the restructured Balance Sheet, it has a chance to succeed.
Your theory is that EVFN spun this thing off to expunge $50m in debt and now that it is in bankruptcy, they'll get the assets back while the debtholders get completely hosed? Only a European could think this way.
I know you'll never respond to my posts, and why would this be any different. By the way, your inability to debate salient company issues further weakens your drive-by pumps.
Nonetheless, he seems to have extreme difficulties preparing and filing very simple financial reports in a timely manner. It's not as though the required quarterly filings 'sneak up' on the company.
EVLN currently has an "e" attached for non-filing, EVFN is filing late - again. Accounting for $0 in revenues must be harder that I thought.
That is not the hallmark of professionalism.
One more thing I'd like to mention:
Language is a powerful thing and it is important that one is able to read and comprehend what is written. The buyins report states that "The total aggregate number of shares shorted in 2010 is approximately 223 million shares."
It does not say that the current short position is 223m shares. Nor does it say how many of these shares are still short or how many have already covered. Theoretically, the short position could be anywhere from 0 to 223 million shares.
The PR is cleverly worded to make you believe that the number is closer to 223 million, but that is not the case. There's a better than 0 chance that most investors that would have shorted earlier this year around 1-2 cents have long since covered.
If you care about hearing my theory, the biggest shorts are likely insiders or related parties. Can't back that up with facts, but that is not an uncommon practice in the pinks.
This is for what it is worth. I am pretty sure your enthusiasm for this perennial loser remains unbridled.
Is that supposed to be news?
How many more times will you try to convince us of something that simply isn't.
By the way, the marquee station remains in the same state of disrepair in which it has been over the past 5 years. I'll let you know when things change and your story grows wings. Until then, I leave it to you to ignore reality.
By the way, I am REALLY anticipating the short squeeze you have been predicting. Are you aware of the fact that in order for such a squeeze to occur, there ought to be a shortage of free-trading shares such that shorts can't find enough shares to cover.
Unlikely to happen with a company that is admittedly diluting to cover operating expenses.
Then again, you are the expert.
And it looks like the typical DM affiliated company.
$5.6 million in compensation expense on $0 revenue.
A shareholder's dream
It's always the short-sellers, isn't it. Ever figured that short sellers would crash and burn if the company did the right things and acted in the best interest of the shareholder? Short selling is perfectly legal and an important tool to keep the markets in equilibrium, but I am sure you'll invoke the pupmers trump card soon: the naked short.
If you were to grade management's performance here, could you honestly say they deserve anything near to an "A"?
-Gagged transfer agent
-Lack of finanial transparency (former OTC BB stock droppng to the pinks)
-History of filing 'non-reliance' statements for initial errors in financial reporting (see 8-k filed for EVLN this week) EBOF had its fair share of those
-Big mess with the current dividends
-Hundred's of millions of shareholder value lost (see retained earnings
-Reverse split into a buy-back announcement
-Entering into NDAs with selected shareholders while reportedly allowing them to trade on insider information but then suing said shareholder
-Defaulting on most of their credit lines in the past
-Missed on most deadlines ever PRed
-Being sued by many former business partners on ventures that went sour
I can go on and on. What are your arguments pro management?
Your constant proclaiming of how long and strong you are keeps reminding me of the little kid that is going into the basement yelling "I am not afraid, I am not afraid".
Let's not forget our friends that were talking big about a potential impact of the PNGX situation.
What happened today was the inevitable - bankruptcy 101. The existing equity, including the shares held by EVFN was wiped out and the new equity went pro-rata to the debtholders.
Predictably, all the spin about how the court's decision would somehow have a positive impact on this stock turned out to be just that - spin.
Pumpers will find new fodder and will always casually overlook that the PPS is tanking. Last time I checked, we are all in the market for the money. Not a feelgood story about a CEO redeeming himself by making things happen after five years of terrible leadership and horrendous financial results while killing group after group of shareholders.
Since curiosity always kills the cat, I drove by there today to verify your report, but sadly there are still tumbleweeds inside the overgrown chainlink fence that is surrounding the property and the windows of the 'station' still consist of plywood.
I can't really tell if any work has been done since the last time I passed by, but rest assured that they are ways from opening this location, no less turning it into a flagship.
Although, coming to think of it, calling this place in its present condition a flagship for this company is actually quite poetic.
Sure, but given the volatility in this thing you might set yourself up for trouble. I agree that the long-term trend is nowhere but down, but it's shown that it can spike short-term. Your broker may force you to unwind in the worst case, which is exactly the reason I never bothered to short this, even after the R/S.
Thanks.
Wondering aloud who would and could short a $0.0029 stock? The only reasonable answer I can come up with is someone who has access to unlimited free shares to cover and wants to take advantage of a selling opportunity before prices deteriorate further.
Where do you garner your short information from?
If pinksheets.com can be relied upon, short interest as of 2/12/2010 was 8,477 shares, which is a minisule portion of the float and the daily dilution, umm trading volume.
http://www.otcmarkets.com/pink/quote/quote.jsp?symbol=EVFN
Unless you have any proof, I don't think you should use this as another excuse for the poor performance of this stock.
But, let me guess, the answer to the missing shorts probably reside in Fairhope, as well.
You should really put that theory to the test by trying to pledge your EFVN holding as collateral. Do you think that you'll be able to convince the bank that it is still worth the $1,000 pre-split just because you haven't sold.
Continue to play ostrich alll you want, but that is a loser's mentality. Rational people sell when they see the bottom fall out and deploy their remaining capital where it has a chance to appreciate.
You are correct on one of them, I can't tell on the other Topeka station. The argument remains that if these were underserved markets or blockbuster locations, why aren't they taken by the big boys?
Is this why the prior owner of the truck stop is willing to give it away for a song and a dance? Has it occurred to you that all the locations chosen so far were discarded by their previous owners? Do you think they couldn't handle the massive amount of income these locations produced and just couldn't wait to turn away the golden geese?
I am sure that the conclusion you will draw from this data is far different from mine.
Aren't you the genius that pronounced a reduction to 900m shares pre-split while the O/S went to 100 billion with a "B"? Looks like you have little room to point fingers.
Lest we forget the 90%+ haircut from pre-split levels.
There are numerous producers of biofuels that produce north of a billion gallons of ethanol a year that don't see the need to retail, think ADM and Cargill. There is a well established market to sell ethanol if you are indeed capable of PRODUCING it.
To think that you'll have to first establish retail outlets before you commence production is ludicrous, given the required logistics network it takes to bring YOUR biofuels to YOUR stations. Especially if you think about the fact that the only "planned" facility that actually belongs to the sister company EVLN is in Washington State. Makes a lot of sense to truck that stuff to Kansas, doesn't it?
How come noone has enough common sense to notice that this is just a loose combination of dreams, prayers and pieces that really don't fit together? I still struggle that a company would be willing to provide EVFN financing, given that previous creditors just settled for mere pittances compared to the amount owed. That's the equivalent to someone receiving $1 million in new home financing a second after the bank foreclosed on their existing home.
If there ever will be such a thing as "Big Biofuels", I am pretty certain it won't come from a company that has little to no cash and no actual operating experience in this space to its name. Let's not forget the checkered track record. We can argue about nuances of Aurora, Apollo, EBOF and how the original $50m of cash was wasted in failed projects, Durant etc, but fact is none of them succeeded and all of them left shareholders with a very bad taste in their mouth.
If this were such a slam dunk, why wouldn't an established player jump on it? There are billions of private equity and corporate dollars looking for growth opportunities, but the bright minds that run these operations somehow missed out on this sector?
Let's not forget, there's a reason this company traded at $0.0001, performed a reverse split and saw it's market value erode another 90%, give or take the daily fluctuations.
Does this poster mean to paint the picture that the PNGX Chapter 11 filing is somehow going to turn into a boon for EVFN?
If anything, it tells us that the business could not generate income regardless by whom it is ran. It lost money while under the control of AOOR and it lost money as a stand-alone. If you actually followed the story leading up to the bankruptcy, PNGX lost its most important customer who accounted for about 60% of revenue. I think they were actually sued for breach of contract by said customer.
Durant is by no means closer to being operational than it was six months ago. No permits, not capital expenditures, only sales of existing equipment to keep the party rolling for another quarter. Besides, are you aware that the government allowed the biodiesel tax credit to expire? The industry couldn't make money WITH the tax credit.
Luckily for all investors, SWRS is about to strike gold.
Comedic gold that is...
Weren't you up by 10k allegedly just a week ago? Do you mean to imply that the dividends will bring you back down to earth?
True colors.
There is no need to attempt to divert blame on message board postings when the company has had any opportunity to make things right but failed to do so over and over again.
With respect to the $0.32 target posted on Yahoo, this isn't some Yahoo Analysts concocting the number, they simply use a number that is available from other analyst services. Specifically in this case the company, EBOF at the time, paid an analyst firm in cash and shares to initiate coverage on EBOF and surprisingly, that lofty number was established. I believe the stock then traded in the teens, with about 100m shares outstanding. That must have been almost 3 years ago. A small amount of research will corroborate that. Given that this turned into a sub-penny twice over should give everyone some perspective on what that target really means --- absolutely nothing.
RedChip Visibility Research Disclosure
This report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change. RedChip Companies Inc. is an affiliate of the Aurelius Consulting Group, Inc. Earth Biofuels, Inc. is a client of the Aurelius Consulting Group, Inc. and of RedChip Visibility, a division of RedChip Companies. EBOF paid RedChip Visibility $36,000 for the RedChip Visibility Research Program, which includes this report. RedChip Visibility, a division of RedChip Companies, Inc., and the Aurelius Consulting Group Inc., in a joint marketing agreement, have been contracted by Earth Biofuels, Inc. to increase investor awareness of EBOF to the small-cap equity community. These services may include investor conferences and digital and print distribution of EBOF investor related materials. In the purview of Section 17(b) of the Securities Act of 1933 and in the interest of full disclosure, we call the reader's attention to the fact that the Aurelius Consulting Group is an investor relations firm hired by the Company and receives a monthly fee of $7,500 and 11,000 shares of Rule 144 stock per quarter for Aurelius services.
CONTACT: RedChip Companies
As to fuel stations, the Lemmon/Oak Lawn location is still not showing any signs of work performed, and my understanding is that Knox/Travis is dead. Don't you need executed leases to start construction rather than letters of intent?
I can go on and on how this company lacks credibility and follow-through at all levels, exlcuding the issuance of the shares. They have attained mastery of that aspect.
It deserves to trade where it trades unless that 4 year pattern of dangling carrots to attract investors can be broken.
I'd like to understand your enthusiasm for this company at this point. I read that you have confidence in the new CEO, but based on my understanding, there hasn't been much open activity in Muhlenberg County since that dog and pony show they put on at the groundbreaking.
Furthermore, based on recent filings, it seems as though Herda is still running the show.
Don't get me wrong I am not criticizing, just trying to get a feel why this board recently heated up again.
Disclaimer: I sold a few months ago at a good sized haircut.
There might be a precedent that could be worth following:
If any of you guys recall Xethanol (another fly-by-night claiming to be making cellulosic ethanol from paper and pulp biomass), these guys were first busted by Mark Cuban's website Sharesleuth.com. The ethics of Cuban financing the website through short positions on the companies he investigates notwithstanding, the investigative journalist is pretty sharp and dug up a lot of dirt on the company. They are usually looking for new cases.
This ultimately lead to a class-action lawsuit and a settlement where investors were able to re-coup at least part of their losses. This, of course, only was possible because XNL had some real cash. Not sure if you find any lawyers here, since there don't seem to be any spoils to divide. Same may go for Sharesleuth, because who would ever want to short a sub-penny?
Hiring someone as a consultant does not make him a full time employee, just as the PR indicates. "Dr. Phillips will continue to be Adjunct Professor of Wood and Paper Science and Executive in Residence at North Carolina State University, Raleigh, NC"
Do you think that if Phillips had "the goods", he'd go to work for a pennyless fly-by-night organization rather than hiring on with someone with far deeper pockets?
Furthermore, how again is this benefitting the shareholders of EVFN? You should ask the shareholders of AOOR how it feels to fund another concurrent upstart with DM just to be left in the cold when the jig is up.
Since, unfortunately, his so-called company neither produces nor sells biofuels, management will have to dump another 5m shares on your ilk to afford this scenario.
Then again, in the grand scheme of T&E spent at this company, it's probably a drop in the bucket.
I have said it before and I'll say it again: Real companies pursuing cellulosic ethanol spend millions of dollars annually in proprietary research & development and, on occasion, receive government grants to speed things along.
In stark contrast, these guys are riding sidecar on some low-probability research that is done at this University and others all over the place and want us to believe that by spending 15k a month, they are about to make a technological breakthrough that has eluded so many fine and well funded competitors.
I have learned a tough lesson on Xethanol, and they sounded and acted way more professional and sophisticated than this lot, and they still turned out to be nothing but a scam.
Call me crazy, but I am naturally a bit skeptical when, as per the announcement, the company converts 2m shares for $21m in debt. Between friends, that's a conversion rate of $10 per share. These boys on the other side of this must be mere geniouses. First, they sink $50m in cash into this black hole and now this?
Even the most arduous of supporters surely don't believe that this is a $10/share company. This smells a little bit like the debt conversions last quarter when Dennis PRed that he essentially got rid of debt scott-free and suddenly 38B shares appeared.
Either way, while it seems a coup for DM at first glance, this company had $40m in liabilities at the end of last quarter. In my estimation, they are no closer to repaying $20m with operating cash flow than they were $40m.
Since DM has always been on the up and up with the shareholders and all of his leaked announcements have materialized, that seems like the thing to do.
If you would be so lucky that Randy Hepler is actually taking your call. It's very interesting how their availability changes depending on whether they are in full "pump" or "hide after the carnage has been inflicted" mode.
Guess which one they are in nowadays?
They also have a very real bio-diesel plant whose design was flawed from the get-go and lost a ton of money for the short period in which it was producing.
They also have a pretty office in a far too pricey location for a company without revenues for years, but I digress.
They also have a tax-payer ID etc, so they are a real company alright. They also have a very real $40m in debt and next to $0 cash.
However, all of that still doesn't make it a VIABLE company.
I live in Dallas and drive by that particular intersection at least once a week and there has not been a change in that location since the board was put up. No clearing, grading, digging or any activity whatsoever. Furthermore, if you follow the PRs, a lease agreement on the location was never finalized. The intent to do so was announced and it was to be completed by 11/30/09.
So you may want to include an asterisk in your statement.
Yeah, because conventional wisdom in stocks always states that down is better than up.
Shaking my head in disbelief.
Because stock dividends don't require disbursement of cash and the stock that they are greciously bestowing upon you is illiquid and can't be easily converted to any serious cash.
You'll be amazed what will happen to the artifice known as EVLN share price once people start hitting the ask. What's the volume been over there for the past three months? 1,500 shares traded?
I don't believe that the TOS require you to own shares to issue an opinion thereon. If Nobull irks you ever so much, could it be that his insights make you just a tad uncomfortable?
That is exactly the purpose of a message board. You should listen to the good, the bad and the ugly. And you should really not invest until you have become comfortable with 'the ugly', especially in the pinks.
Nobull is simply that nagging little voice that you know you have somewhere inside, also known as buyers remorse.
No offense, Nobull :)
You will be thrilled to learn that 30m additional shares found their way onto the market in a mere 16 days since your quote.
http://www.pinksheets.com/otciq/ajax/showFinancialReportById.pdf?id=27168
First off, your so-called DD didn't even reveal the most recent share count as stated by the company itself and secondly, in response to your Reuters boast the company has also been recently covered by Forbes.
You should take the time to read it. Now that is what most neutral observers would call "Bad News".
It's vastly overrated