Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Hell, if you look back, I was the very first poster on this thread.
What are you doing here?
I would think it is time to ask ourselves, irrespective of all current management, how much value do you think is present with the footprint EGMI has created for itself?
Scientific games 500k recurring revenues are ending at the end of March, BUT, if there is a good price point for the cards that can be sold by US State Lotteries, EGMI will now be free to sell into those markets.
There are deals abroad that have been penned in the recent past. Many seem likely to amount to something.
Look for a huge stockholder organization to take back the company.
I contend if managment is really uncaring they would let this think hit very hard without any updates to then give all the corrections/updates and good new to send this upwards.
Translation, a veiled successful attempt at Shaking those f 'in trees for shares!
If you look at the lawsuits that are to be pursued at this point, would you really want to trust a decent long position to these firms that are chasing each other to the courthouse steps to file first?
These firms seem to be going after the easiest claims posssible.
Ohh I am harmed, they cancelled a CC, Ouch.
Ohh I am harmed, SEC suspended trading.
What about the auditors, what about the seemingly endless affilliations these insiders have with everyone, what about investing company money into non-fiduciary capacities, funding a bunch of penny start ups! They don't want to do any digging or harder work before filing their lawsuits? Almost starting to sound like EGMI as of late not wanting to do the hard work of keeping house properly.
No thanks to these first few firms rushing forward like this. What if the restatements are non-material?
What is the significance of the April date in 2007? Why not before that?
Why are not any of the auditors mentioned in the lawsuits?
If they did not have Officers and Directors Insurance, then will they be on the hook for the legal costs?
Most likely there is some type of provision in their contracts to have EGMI foot the bill, can shorts be a litigant? If not, then all longs will get fractions of dimes at best for their shares...
Totally agree, sorry for sound like a bad infection (mono tizing) can't spell all that well.
Surely these smaller start ups, the likes of EGMI that get some real money in the door (500k from Scientific Games) should NEVER act like a venture capital firm and hand that money over to newer technolgies with no track records.
THAT IS WHAT HAS BEEN GOING ON FOLKS!
Who knows how to organize a shareholder initiative? I think we need to pull back every dime we can with these outside investments and stop the outflow of any additional caplital unless it is strickly back to their, ONLY ACCREDITIVE acquisitions being made.
Thanks, well here is to holding him at his word. Maybe the Mendoza issue came up as they were combing the valuations for the movement off the books of the investments (err monotization).
Can I take a collective sample of what investors here think about the multitude of various investments and cross ties so many of these players seem to have?
On the one hand, they seem to be diversifying their risk by come in with a broad approach to these various start ups, better the chance that one of them grabs hold to make them some money.
But when does the 'play' end and the true fiduciary responsibility to shareholders take over?
I did hear the company say they were planning on monotizing all investments this year. Can anyone else confirm they heard the compnay say that?
exibit 99.1 Mendoza letter to commission
EX-99.1 2 exhibit_99-1.htm LETTER TO THE COMISSION FROM MENDOZA BERGER & COMPANY, LLP
EXHIBIT 99.1
February 26, 2010
Office of the Chief Accountant
Securities and Exchange Commission
460 Fifth Street N. W.
Washington, DC 20549
Re: Electronic Game Card
Commission File Number 000-25843
Dear Sirs:
We have received a copy of, and are in agreement with, the statements being made by Electronic Game Card, Inc. in Item 4.02 of its Form 8-K dated February 19, 2010 and Item 4.02 of its Form 8-K/A dated February 22, 2010 and captioned “Non-reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Audit Report”
We hereby consent to the filing of this letter as an exhibit to the foregoing report on Form 8-K/A Second Amendment.
Very truly yours,
Mendoza Berger & Company, LLP
/s/ Mendoza Berger & Company, LLP
Irvine, California
9838 Research Drive, Irvine, CA 92618
949.387.9850 Fax 949.387.9652
HAPPY BIRTHDAY PONTIACNUT!!!! Enjoy all your posts and putting all those Dots out there!
I was a bit hasty in summation of this filing in my last post.
It seems to read that EGMI is asking M&B to acknowlege that the SCOPE of what they are concerned with/ and looking into is this UK bank account.
Doesn't it just say that M&B are in possession of updated information and that EGMI is asking M&B to accept the new numbers as valid, thus releasing their (M&B's) non-reliance on previous numebers?
If you click on the annual tab, you get numbers back to 2006
I am personally aware of others that were looking to take positions or add to positions. It is just baffling to have such a sinking feeling overall yet holding some type of hope I have not been screwed yet again.
I feel this company should provide clarification, hold a CC, and then announce reiteration of all their past releases, including the future numbers before this stock opens for trading again.
If you added the daily volumes of reported shorts, then you saw alot of trades, but how many of the buys were already closing out short positions? Not sure what the outstanding number is presently, any idea? Thanks
So, do you think they were keeping costs as down as they could with minimal employees since really all the physical infrastructure is the manufacturing facilities we hire or our co-partners who do their own ordering hire, so no need to incur rental costs to any offices...
Or, is this company playing fast and loose, shifting investments around to these private/public little companies, and using us as the money source?
Now with the SEC halt, did this come about by looking past books over closely for fiduciary responsibilities, or did they get ratted out by 'sour grapes' or is somebody finally spilling the beans about what a total mess this is?
A lawsuit in this situation will not work for us, unfortunately, just the law firm.
Regarding the auditors,
So they have some experience and qualifications behind them. If I need to attempt to sue the company based on work these auditors performed over the last few years, should I name them as defendants too?
I mean if you audit and approve books for a number of years, and me, the investor puts my money on the line based on those numbers, how can you then UNCLAIM what you previously claimed to be true? I don't think you can. Meaning, if you invest in egmi after the latest disclosure, you do not have actionable reason to sue them, but if you invested during Mendoza Berger's period when they were standing by their work, then they are on the hook, right?
The Zapulla's are husband and wife I think. Again, I have dealt with them in another small start up company. They run an outsourcing PR firm. As such, they probably have a domain name service to post web sites for some of their clients.
It does get problematic that all these little companies pass 'investments' around like a shell game, that seems to massage numbers for these little players to help them attract more and more investment to play and hopefully grow with.
I am sure they think it is 'creative financing'.
Well I cleared my cache and now I get the same message, sorry.
jocotepec,
Can I suggest you clear your cache. Maybe that will help.
www.electronicgamecard.com/
I got to the page just fine...
By the way, I think this board is terrific, keep it up everybody. We seem to all be in the same boat, keep it civil.
I can see where some of the newer investors are coming from. They got caught up in the buzz and many have initial entry points from 2.24 to where it closed when halted. I have been around here since 2006, yes I have talked about buying shares for 9 cents. Personally never cared for those that felt the need to post the quantity they own.
Why? Do you need to give yourself credibility? Do you need to be envied? Do you want to feel some power over others? Whatever.
In any event, my concern is not that EGMI is a sham, no. My concern is that intentionally mishandling is the 'fraud' and what is valuable around here is exiting via the back door, or mishandling will allow competition to dilute this company's position. They have been getting it right for awhile now, but as of late, I can not explain concurrent missteps. Seems like Enron, those at the top are seduced by making deals and not servicing deals.
I started looking at this company when this was going on...
Article: Kansas Lottery to Offer Players Electronic Game Card.
Article from:PR Newswire Article date:September 19, 2005 Copyright
Related articles
Ads by Google
Lottery Winning Results
Get Daily Winning Lottery Results with the Free Lottery Toolbar!
Lottery.alot.com
Kansas Health Insurance
The Blue Shield Rate for Your State Compare Rates in Your Area for Free
HealthCompare.com/Blue_Cross_Shield
Becomes Second Lottery to Distribute Pioneering Game
NEW YORK, Sept. 19 /PRNewswire-FirstCall/ -- Scientific Games Corporation announced The Kansas Lottery will become the second in the nation to offer its players the advanced Electronic Game Card, now that the Kansas Lottery Commission has approved the award-winning game. Kansas expects to launch the yet-to-be-named game in November.
"We are extremely thrilled that the Kansas Lottery has decided to include this pioneering product in its already impressive line up," said Steve Saferin, President of SG Ventures. "Innovative games like this truly do attract new demographics and offer a fresh option to lottery players."
The Electronic Game Card (EGC) is a pocket sized digital lottery ticket. Each card, about the size of a credit card, is battery powered and loaded with…
Don't be fooled: If a state lottery commission approves your gambling product, you are doing something right! Same goes for the Indian Gaming Market!
The thought crossed my mind that such calls do not sound so good, but EGMI put themselves in this position. I would have to think they are not inept to the degree they did not call their business partners first to assure them everything is a big misunderstanding and that they can not wait to cross every T and dot every I before they talk to the public as a whole.
Hokie,
To me, the Bally relationship was at best, a bad move that was a move away from the business model , namely looking for companies to partner with that could take our product places. Depending on the fine details I guess I could offer that if the game card did take off, EGMI would have a nice library of other games.
At worst, it was a stab at keeping the plates spinning in the air in the attempt of floating EGMI's name around with bigger fish, giving it the illusion that strides were being made.
The deal is very small for Ballys because EGMI offered to PAY THEM money for access to their library.
The same sort of deal it looks like to me that Kevin promised to give Poken $500,000.
In both cases, each courted company was wooed with 'EGMI's GROWING CLIENT BASE'.
It is looking to me like Donavan did a good job of blowing smoke up Poken's *** and when Kevin put on the mom and pop huckster routine in the retail shops, Poken KNEW there was no substance behind the mighty EMGI sales and promotion pipeline.
Where do people go wrong? EGMI was really clicking at one time when they were moving the Class II gaming device through the channels.
I am of the present camp that theft is being attempted towards current shareholders to wrestle the value out of EGMI.
You can Wikipedia LS. Very interesting Chap.
Grup put his mouth where his money is. Seems like a very hard core realist to me. I don't know if this stock can open again.
I am not sure every days short activity is compounded in the total short shares; volumes on those days are quite high and I would assume those astute short sellers were also buyers to close out and cash in some relatively (to them) decent gains.
Scary stuff
Felt like that happened to me in another start up company, namely a past employee or a complicate scheme to remove the valuable technology to another entity once the penny stock holders footed the bill for several years.
Delay upon delay until....What do you know...leading technology falls behind to almost the same, yet much better funded technology.
Thought it was the old VHS and Beta issue.
EGMI has a nice Class II Product, approved and ready to ramp up.
EGMI has some nice contracts in place to get a foot in the door with some promising up side.
EGMI has, as far as we know, no Debt.
EGMI is getting out of a binding 3 year deal with Scientific Games.
EGMI trimmed down a quick play attempt at a non-core venture (Poken).
EGMI has grown uncoustomarily silent.
EGMI seems to have, for SOME reason, put their past books, books that were, so to speak, put to bed, under a very bright light. They turned up a ticky tacky 'verification' issue with an account in a bank that changed hands?
Is there any other choice than to think things are either VERY GOOD or VERY BAD. Us longs are focusing on the possibility of very good.
So lets all chime in with plausible very bad scenarios.
I will start:
EGMI's auditors can not verify a bank account. Was it was used as a portal for payola to some insiders to help sink the shareprice with some orchestrated management snafus to allow a better deal for the acquiring company at the expense of then current shareholders?
You, sir, make very productive use of your time...Thank You
The upselling potential would be more than huge for a Ballys.
Why would you trump up an old accounting issue (seems to be minor at this point), why would you put a gag order on EGMI current management, why did the SEC put a trading halt they announce is to protect shareholders, why does a BB stock have so many shares into the hands of common investors, and the answer is....... a bunch of THE$$$$$$$$$$$$E$$$$$$$$$$E
Yes,
EGMI does have some nice recurrent revenue for doing minimal work. SG a prime example. Glad that one is ending though as I was worried about competition gaining valuable time to pursue the same market. I know they had talked about various price points for the lottery cards and were studying that closely at one time. No time like these times for states to be looking for the latest, greatest way of getting income through the lotteries. Sure would be the right time for someone to make a move.
I, too, had the thought that a sophisticated look over the past books may have been ordered by very competent due diligence need.
Again, with so many shares claimed by posters on this board, including myself who have owned these shares for years, bought with pennies, maybe part of this issue was a simple 'land grab' attempt at wrestling some of these shares from the white-knuckle types like me who have clutched to each share...
As far as the hoops EGMI has jumped through for the gaming seal of approval, it still allows this company a barrier to entry over other technologies I would assume. What I am trying to say is that this name does have very real value.
Saw the Poken link and exposure they got with Fox News....good for them, their looks to be some nice off shoot applications that fit well with that technology. Why couldn't you create a financial aspect that works like debit or credit? Anyway, feeling a bit better about the cancellation as I was holding out for some clarity as soon as possible.
Looks like the law firm is soliciting for a lead plantiff,
Typically, class actions only make money for the law firm and the shorts.
They would need pretty compelling case nevertheless and not sure, unless out and out fraud, if they can be granted class action status on the recent withdrawl of audit opinions.
Good thing this thing is halted right now and the company will have an opportunity to address matters in the CC.
I'm beat down enough to be trying reverse psychology.
Seriously though, I don't feel fraud is involved. But inept managment is hardly a comfort. Here is to hoping for innocent oversight...
As a promotional item, I think the gamecard is close to genius. I have always liked the conservative nature of guidances given. I liked the multi-market approach: gaming; education; promotion.
COME ON PEOPLE!! I very nicely asked for help REMOVING my rosed colored glasses!
Please don't add to my mostly wrong opinions! I can't seem to pick winners in the market and have been with egmi many years and am still positive! This just doesn't happen to my portfolios.
Either Schwab is in error, or they fully understand the implications threatened by the SEC and feel that they are able to make a quote, otherwise they are opening themselves up for trouble.