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Call me a dinosaur, but I look at the balance sheet of the company and I am looking at $0 cash, 31k in assets,$2.8m in liabilities, and an accumulated retained earnigs deficit of $15m, meaning the company managed to squander $15m since its inception.
All in all, looks like a pretty typical DM venture to me.
Based on what?
Strong earnings?
Cash flow?
New profitable opportunites?
Good management?
Being in a strong and rapidly growing sector?
Having a competitive advantage in their industry?
Or is it based on intentions and gut feelings again?
Honest advice:
I did the same thing once with a $10,000 investment in an emerging market play. I was basically in denial while it teetered around 5k and refused to salvage what could be salvaged. Now, I believe it stands at around $34 and I am mad at myself for thinking irrationally. If you have a bad feeling, pull the plug and deploy your capital where you can earn a buck. You may never hit a home run, but you can buy some good stocks today that still trade at a decent discount and will come back strong over time.
In other words, don't trade on pinks, because the odds of making it big are very slim. If you need a feel-good investment in a venture that may turn you into a millionaire, play the lottery. At least you know that is real, and the state is openly telling you that they'll take a cut before re-distributing the paid in funds to a lucky guy. In the pinks, you're being lied to, deceived, bamboozled, hoodwinked and played constantly. This stock is not really an exception, it is the rule.
There was one similar to it for all that would want to read it.
As a matter of fact, I bet it was posted here at least a dozen of times.
It's not as though many of us here kept telling the board the same thing.
I am certain that Forbes will now be vilified by the hoardes and labeled a bashing entity that wants to steal their shares as if there wouldn't be another 800m shares poured on the market in short order.
This is a pattern that will repeat itself over and over due to the insatiable greed of both management and so-called investors who lack the most rudimentary understanding of markets, financial statement analysis, principles of finance and worst of all: deductive reasoning.
I for one am glad this article came out, because I hope it puts this issue to rest once and for all.
I knew you had it in you.
Respect!!
I read your exchange with great amusement.
I suppose in the next five posts, we will see:
1. the link to 'confessions of a basher'
2. accusing you (and I) to be paid bashers
3. asking for another 6 months for the company to right the ship
4. a general ignorance of all things that transpired in the past
5. Coining of a new catchphrase to convey his never-ending devotion to EFVN such as 'EFVN pride'.
Since you have already demonstrated a knack for literary creations, I'll challenge you to turn this into the '12 Days of Christmas'.
That should further enhance Freemaya's burgeoning Christmas spirit (Free, I hope you don't object to the swipe)
Good suggestion!
I have already spent all week-end with the family baking cookies, playing with the baby, wrapping presents, I guess I am in the mood for some mischief.
Great. You win the '1,000th poster with the same deluded message award'.
Where does DM continue to find these people?
Ask your 999 predecessors how that worked out for them. Many of them are the bashers that you allude to today...
Oh, come on now.
Don't be a tease.
Half of it is owned by EVFN and can be traced through their public filings
I understand what you are saying, but when most people started looking into this company, they were going to be a bio-diesel producer first. Now, they are just the guy around the corner who happens to own a couple of gas stations.
Basically the same thing as if your buddy Don would start issuing 200 million shares in an LLC that owns his two stations and folks would expect a world-dominating, multi-billion enterprise to grow from it.
May I also remind you of the fact that Willie's place is hemorrhaging money?
What is this company going to acquire if the only currency it holds in encapsulated by a $2m market cap, which in my opinion is quite generous given the lack of assets and the $40m in debt?
Given the absence of cash and the general trend of the share price over the last 2 years, would you give up anything of value in exchange for stock?
Why doesn't anyone ever look at the bigger picture? How many stations would need to be up and running just to service existing debt, let alone debt incurred to bring those stations up to snub?
I am not entirely sure, maybe they feel that any other card in the deck has already been played.
How would this board react to yet another letter of intent or another vaguery?
I am not sure if it looks good on second, third or fourth glance either.
The dilution machine is humming and the usual suspects continue to drone about how the next best big move is just a mere six months 'round the corner.
Nevermind the reality slapping every loyal shareholder in the face.
How do you define the timeframe of 'recently'? Didn't we see a pre-split equivalent of 13.1B traded just last Monday?
I am not much of a L2 guy and lack the experience to distinguish retail trading from dilution in that space, but I'd be hard pressed to believe that a volume like that is non-dilutive.
You really think so??
I'll buy you a bottle of Silver Oak if those 10m shares yield $50m in cash? EVLN is the most carefully groomed stock price I have ever seen. What has the volume been over the last 5 months?
600 shares?
So a 100 grand a station is going to keep the lights on with that overhead of theirs, provide an adequate return to shareholders, as well as funding the beginnings of an empire?
They are incurring $2.1m in interest expense through 9 months in 2009($2.8m annualized) and roughly the same number for compensation and S,G&A expense apiece.
That'll take a lot of stations...
There are no guarantees that, if they actually succeed in securing enough funds to build them, these stations will ever be profitable.
Have you actually read the 10-Q where it says that the truck stop at Carl's Corner has lost over $1m year to date? I think last year's loss was approximately $700k. I admit that this a an extremely rudimentary analysis, but it appears as though the losses are accelerating. Keep in mind that this $1.8m loss is only 50% of the true operating performance of that asset.
Barring the availability of better market data, this is the best indicator of what is in store here.
I am not saying that these stations can't be profitable, but conventional wisdom dictates that it'll take some time. Where is the money going to come from to fund not only the build-out of the stations but also to fund initial operating losses?
You probably should.
Because why diversify if you have such a 'gem' to pour all of your money into?
It's not like there are any red flags here. Why not give my money to the guys that lost over $208m since the inception of EFVN/EVFL/EBOF alone (FACT - see retained earnings) and another $99m in AOOR (FACT again) per their latest publicly available filing.
I couldn't think of better stewards for my hard earned money.
Why don't you ask the shareholders of AOOR how abandonment feels? DM left them in the cols once that 'business' was tapped out and focus on his new baby EBOF. Since now EVFN is already giving interest-free advances to EFLN (FACT AGAIN), I guess the writing is on the wall (CONJECTURE)
Do you really want me to spoonfeed this to you?
Did the company not say that the O/S is 164m. Multiply by 600 and you get 98 billion pre-split. Authorized shares were 100 billion. 98% tapped out. Fact-Check
Now we have 164m out of 1 billion shares. 16% tapped out. Fact-Check.
Obvious conclusion: A/S is effectively raised. Fact-Check
$0.06 is the equivalent of $0.0001 pre-split. That was last week's PPS. Now it is $0.04 for a 33% reduction. Fact-Check.
How does this work out in your ever so humble opinion. Which statement is wrong?
I agree that this board is for facts, but not all facts will naturally improve the PPS.
As to the choice of name, a cynic is a 'faultfinding captious critic; especially one who believes that human conduct is motivated wholly by self-interest'
Obviously I chose that moniker long before I stumbled upon this company, but given what we have seen transpiring over the past 3 years, it is a nice coincidence that lo-and-behold gives me a nice chuckle.
Even people far less cycnical than I should be more than cautious to believe that a CEO with the history of diluting and failure, who has actually just diluted and reversed out the loyal stockholder base should all of the sudden change his spots.
I don't say that it is impossible, yet I tend to believe that the chances of that occurring are remote.
Why increase the A/S six-fold if you don't need to dilute.
Why not hold it at where it was?
Fact is the stock is down 33%.
Fact is that the A/S was effectively raised, if you understand the most rudimentary math.
You are nothing but the latest incarnation of 'the guy that knows someone in the know but can't really tell the whole story'.
We have seen this guy come and go ever since this thing traded at $7 with 50m pre-split shares outstanding.
Once again, not bashing. FACTS!!
Indisputable facts, no less.
Here's a novel thought for you:
Prior to the reverse split, they were 98.7% tapped with respect to authorized shares. Now that they went through, they effectively increased the net authorized 6-fold and are only 16% tapped out. To what end might that be?
They basically did the same thing as raising the A/S to 600 billion.
And, before I forget, you are 33% down compared to last week.
Good things indeed...
Correction.
Start-up companies have a clear slate.
This is a thrice-failed company, hence the legacy debt.
Yes I did.
They went to compensation, S,E&A and failed projects. You don't have to guess at where the money went, you can follow that pretty easily through their financial reports.
But it was built upon a string of successes and victories.
We're 4 years in, and the AOOR/EBOF/EVFL/EVFN story has not produced a single thing.
You should never forget that these guys once had $50m in cash and somehow managed to squander it all. Who will ever provide meaningful financing to these guys again? In these tough times, even mature companies with healthy balance sheets have a tough time accessing the capital markets.
Open your eyes and pay attention to the clues. They are EVERYWHERE. I will actually say that this R/S is totally irrelevant, because the business didn't have substance before, and it doesn't have substance now.
I am certainly not arguing that. It is extremely misleading, and it is not a way to treat your shareholders. Unfortunately, the company is protecting itself well by using words such as 'may', 'intends', 'at this time' etc. If you want to do anything to curb this type of behavior, I am sure you can turn up some investigative resources on the web to shine a bright light on this company and its history.
Sad thing, someone as credible as Forbes did just that, but nobody wanted to take it at face value.
I said it all along, this was just another crop of dreamers that threw their money wide-eyed and bushy-tailed into a company whose history they did not study, whose market they did not understand, and whose claims that were borderline riduculous they could not dissect.
Due diligence is an overused phrase on this board, and I already pontificated on that in an earlier post.
Sad as it is, it will happen again, either with this symbol or EVLN or whatever rendition of alphabet soup they'll come up with next.
That's just the way I was brought up.
Given that this is a public forum, you might as well put your best foot forward. Writing in a coherent style adds credibility in my book.
Assuming for a minute that paid bashers really do exist on this board, which I doubt, can you run by my how they played a part in the demise of this stock?
If you refer to the people who kept telling you play by play what was going to happen and have been right 100% of time, you should probably sent them a fruit basket instead of including them in some sort of a long-shot complaint.
Nothing illegal transpired here, as much as I would like DM and his cronies to be implicated. They threw out a lure, and a ton of people bit. It is called information inequity (to use a euphemism here). Mr. NoBull doesn't quite sugarcoat it the way I do, but you get the picture.
Professor,
the good news is that thresholds stated prior to the R/S will be adjusted pro-rata for the split ratio,
The bad news is that the dividend is still going to be worthless. EVLN's true market price is nowhere near $5. The company has very limited assets and is basically run by the same 4 guys. Why would you think that the guys that just served up a R/S that they have denied would ever happen will be successful with a company in the same space that they "run" in their spare time when they are not "engineering" the share structure of one of their 10-15 publicly traded shells.
What unfolded here today is what many have prognosticated. I don't feel particularly vindictive or pleased to be proven right on this stock, I said all along that the last thing I want to see is hard-working Americans lose their money on a company with just so many flagrant red flags. Especially the many members of the armed forces that appear to have been posting here.
Nonetheless, I hope people will think twice about message boards in the future. If you see a couple of folks bring up reaonable arguments that are supported by historical facts, financial filings and other verifiable pieces of evidence, and the other guys just yell "GO EVFL", you should think twice about which side might be on to something.
This is pure comedy.
How generous to reward the shareholders with yet another stock dividend that isn't worth a thing. But let's not stop there. Why not throw in some stock that allegesdly trades at $4 per share, the only issue is that not a single share has traded in month.
I would like to see how that alleged market value holds up when the 'lucky' recipients of these dividends start putting in sell orders.
Good to see that most of you appear to have seen the light.
For the rest of you, I wish you the best of luck. Keep in mind that up to today, these so-called bashers have been 100% on the money.
Good for you.
Hopefully you were able to keep your nose above water.
Too bad you got snookered by these guys. We all live to learn.
Why are we still discussing a buy-back?
Today's shellacking should have put and end to that for even the most ardent of supporters. We're now three months and 51 BILLION shares further down the road, the company still has $46 million of unpaid debt and current liabilities and doesn't have the cash to do a thing. Anyone else noticed that there were still exactly $0 in capital expenditures for the supposed re-opening of the Durant facility per the cash flow statement?
I don't even understand why anyone would grant these guys additional credit to start-up or conduct operations. I actually drove by the site of the station at Oak Lawn and Lemmon, and all I saw is a site that has been sitting in disrepair in quite a few years. It will take some serious cash to bring this up to snuff compared to the shiny picture we all have been shown. With only 28 Billion shares left to issue and 154k in cash at quarter end, I just don't see it happening.
It's sad to see that some good folks have lost their money in this company. Someone here today probably summed it up best by stating that anyone can own two gas stations.
Think of it this way: every single one of us has a higher net worth than this company. At least we don't have a $46m millstone around our necks.
One last comment: Looking at these financials and the , ummmm, complexity of the transactions that occurred during the quarter, I still don't understand why these reports couldn't have been filed on time. Way to go new CFO....
FUN WITH MATH
Mind you, this is highly speculative, but a thought just occurred to me:
If the company is dividending out 1.5m shares of SWRS, but you must have at least 50,000 shares to share in the wealth, doesn't that seem to discriminate against those that hold 49k or less? Should't they be entitled to their fractional proportion of ownership, as well? After all, a share of stock represents a fractional interest in the assets of a company.
This leads me to conclude that the 50k EVFL level is the mathematical equivalent of 1 share in SWRS, thus leading to the conclusion that the O/S in EVFL is 50,000 * 1.5m = 75B.
As I said, highly speculative.
Let me offer some perspective for you:
If history is any indicator, there is no direct relationship between the price of oil and EVFL/EBOF.
We have seen this whole oil-increase-promotes-biofuels before:
Price of oil rises - so does the retail price of ethanol and biodiesel driving up demand for corn and soybeans which are key raw materials. Higher oil prices also drives up the farmers cost to raise crops. Both factors result in higher raw material costs for biofuels producers. Unfortunately, the reason for the malaise in this sector over the past 2 years was that these input costs increased faster than the price of the finished product.
Let's not forget, this company squandered away $50m in cash an posted double digit million dollar losses during a period when oil was $100+.
Lucky you, because those 0.0001 have been really tough to come by over the past 4 months.
So business is going?
Any producing plants yet? Any cash flow from operations yet?
Any gas stations selling fuel yet?
577,
unfortunately the post in which you accept our little wager is now gone, but I am pleased to play anyways.
Thanks to today's news, we now know 2 things for a fact:
1. You and all that said a buy-back has been ongoing since weeks and months proved to be wrong.
2. Not a single share of the 60+ billion traded since 6/30/09 have been purchased back by the company, as they PR states the buy-back will be occuring in the FUTURE.
The next point is conjecture on my part, but given that the 6/30 A/S has traded over three times, I feel very safe that the 9/30 A/S is above the June number, which is the substance of our bet.
I am even go as far that in a best-case scenario, if all 10B are re-purchased, we would still be above 21B.
Now to a more substantive point. To all those who think that the company has the $1 million from the judgement, I have bad news.
First of all, the company stated that a judgement was entered, not that $1m was collected. That is a significant difference.
Secondly, EVFL has a judgement against itself courtesy of the Vertex breach of contract situation. Since the company has not paid, do you think that judge would look to kindly if EVFL would any available funds to do a share buy-back?
"A settlement had been reached in 2008; however, due to lack of cash flow the settlement amount was not paid. Subsequent thereto Vertex was awarded a judgment against Evolution. The investment in thiscompany and related plant was deemed impaired due to lack of operations and was charged to earnings totaling $2,435,000 during 2006, and $2,543,000 during 2007, resulting in total estimated impairments of $4,978,000. During the third quarter 2008,
approximately $3.3 million was accrued regarding this contingency. The Court granted Vertex a Turnover Order on the assets owned by Evolution on September 26, 2008. Due to the secured assets of Evolution, Vertex was unable to collect any assets. On March 20, 2009 a Second Motion for Turnover was granted to Vertex. The Second Motion for Turnover was for the membership interest in WN Truck Stop, LLC, at this time the Second Turnover has not been enforced due security interest on the Companies’ ownership in the truck stop. Evolution made payments totaling $195,000 during the six months ended June 30, 2009 and is working in good faith with Vertex to reach a mutually agreeable settlement."