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.
Kardon, let me get this right, basically what you are saying is that Yvonne may know something, but can not say because she is handling her job and responsiblities in accordance with the law in a professional manner.
And she can not sell her stock (which has been stated in other posts as substantial) with insider knowledge. So to sum it up, Yvonne,
A.) Acts in a legal manner
B.) Acts in a professional manner
C.) Has much at stake (if not more than most here)
and somehow you try to attach a negative connotation to her answers and actions. Hmmmmm
Ok I will go with D.) All of the above.
I might add as I have said before, She is in NYC, CFO and staff of EGMI mostly in London, and Kevin is traveling all over, but based in California. She probably knows less than you think, given the geographic diversity of management, NOT like they have offices down the hall or even in the same city.
While a buyout would be a nice swift outcome, I am not counting on it---the other path/outcome of swift management change and clarity might in short order yield more to shareholders.
In either case, I believe their still remains underlying value in the company and business model, providing they do not continue to do their best to ignore it.
I would hope that whomever is in charge BY now is getting the message loud and clear, from the SEC, CPAs, stockholders, lawyers, IR, the marketplace et al. Sometimes it justs takes a 2 x 4 between the eyes to do that.
I will give it some more time, afterall it has only been out of its TIME OUT one trade day. I think the last PR surely gives hope to stockholders that the LIGHT is ON at the company and with a few more PRs that would indicate someone at the helm focused on the issues, it think the PPS will continue to rise.
You will see it drift with no news and Jump with any good news, but by month end I think you could be 80c to a $1, particularly if they have a CC that airs everything out and have an on target 2009 and a good 1st qtr (Assuming the auditors bless the statements).
I think EGMI has a significant number of resellers and with orders being B2B with no inventory stock basically, the business model can survive the turmoil even if the PPS can not. AND to me it is the basic business model that needs to be intact for the PPS to go forward with clarity from Mgt.
That is my take, Others can differ as mine has alot of IFs in it. IF we knew the ifs, then it would not be a risk one way or the other. I have been waiting for a four bagger on this for years, and some got it in 4 hours on Friday. LOL
I think based on the last PR that did not include a signature of the CEO, that Kevin D. is pretty much AWOL and in my opinion at the root of all the issues, surely he is to blame, just based on the titles he holds. It has been KD that has been postponing the CCs.
After getting the statements re-certified by the CPA, seeing him resign would be the best boost to the PPS that I could think of currently.
It would not surprize me that IR could not get ahold of KD and after trying, gave up and had the interim CFO sign the PR. Remember Yvonne can not issue a PR without someone from the company approving.
I highly doubt that the estate would have contacted the SEC and put up red flags---particularly since they would have nothing to gain over it. You have to figure out IF The red flag was NOTHING and the cash was there, Who and WHY would be motivated to do so. That is the puzzlement.
At some point in time that information will be apparent, but in the meantime, EGMI has to over the balance of the month resolve some pretty basic issues,
a. Reinstate the Financials by resolving with the CPAs the cash confirmation
b. Announce a new CFO.
b. Complete Financials for 4th qtr 2009 and total year. Have them audited and certified.
c. Hold a CC, get out a Proxy to setup an annual meeting in April/May timeframe.
d. Vote in at annual meeting, new filled out board, replace CEO with someone stockholders will have more confidence in as I believe Kevin is ineffective.
e. Confirm Guidance for 2010
All pretty basic stuff for a going concern with postive cash flow and a working business model.
Inquiring minds will want to know.
When the dust settles I was thinking that stockholders are going to want to know WHAT or WHOM was the catalyst to spook the CPAs. It was this last straw act that solidified the stock halt resulting in at least in the early trading, a decimatiion of the PPS from recent valuation. --at the end of the day a 50% haircut.
Infact inquiring minds will want to pin the tail on the donkey (or jassass) to determine who was the whistleblower and what was the motive. This will take on a WHOLE new importance if as I suspect the CASH is there and as the Friday PR claims NO substantial change in net assets--which I take to mean, not only is the cash there, the rest of the balance sheet will be reaffirmed as well.
This is the person or institution that deserves to be sued.
WMTHECOMMONER. Photo below of my Jaq with message for the culprit, Dante has a special ring/place for you,
Now 40c for the one asking. And Losing I already have a boatload at 83 cents basis, so was up pre halt, now working my way back. 435K shares, if not a boatload, even at these prices enough to buy a boat.
It is okay to be skeptical, but mark this down and see if credibility is being established, Seems like the communication part is --so lets see if the PR is credible when the results are certified and build from there.
Interesting the PR contact is Linden Boyne , the temp CFO.
Great news, PPS almost immediately reacted
Fair enough GWMAN, time will tell when the story unfolds and is told --until then I think she deserves the benefit of the doubt.
you can make your judgment, I will make mine, as far as compensation, I assume she gets paid, but am not privy to the arrangement. You get paid when you work, she is entitled to getting paid for working as well, but I will tell you I would not want to be having to carry the water for Kevin for whatever the money or having to IR his behavior ---so blame Kevin, not the messenger.
Give Yvonne a break, she is inessence one of us with a substantial stock position. Has always been upfront with me but with this situation she only knows what they tell her. And with KD in California or Poken something or other, and the rest of the company in London, it is not like they work down the hall.
She is an asset to all of us, unlike KD whose name is all over this mess and wears the Black Hat in my mind. Significant stockholders are now well motivated (and have been) to push him out and take back control over what is a profitable company and find a CPA that can confirm a bank balance.
Harry Good to see you post, I was wondering where you were. Hang in their buddy, I know you are twice my size in this, so praying for both of us.
With a restated statements from the CPA with no substantial change, you could get that 85 cents,, WHILE kudos to those that bought at a dime, kudos to longs that as I did, had the calm to not sell at a dime.
WOW did you see that 205,000 shares at 35 cents, SOMEONE is interested, GOOD SIGN
eratic panic market, great for newcomers, for me and others, just will lie in wait until the CPAs get done with their work.
Well so far opening of stockmarket for EGMI has turned out to be just like Y2K scare or if actually able to trade, a Mexican standoff.
I just love people out to prove a self fulfilling prophesy. Go get crushed.
First press release I want to see is the CPA reinstating an opinion, the second is the resignation of KD, and I would not mind EGMI getting a new CPA like BDO rather than a small firm in Southern California, which probably is handling this issue during tax season as not a priority.
BDO is international, household name, expensive, but hey right now EGMI needs to spend the money if it increases credibility
You all are standing in line like this was a SHOE SALE on Black Friday. IT IS What it is, the fat lady has not yet sung and I am going to hold tight here until she does. MEANTIME you ladies can fight over the shoe sale.
It is my hunch that the SEC would not have let this reopen if given information that they surely have been reviewing while the company works this out INDICATED serious issues. So reopening in and of itself is a Postitive sign.
Regarding the issuing of PRs from EGMI, working out details and getting PRs in this environment (where Lawyers probably NOW review everything) takes more time as the wheels slowly turn.
BY THE END OF THE Week, I suspect, those that sell today will have sellers regrets. PRs and the true story will come out in time and that time is IMHO IS nearing
SEC website shows halt/suspension released as of 7AM, So while most here would have preferred an announcement or PR with CC details before this happens, IT is what IT is.
Let the market settle out the value. I liken this to being in a crowded smokey night club --someone yells fire. I sure as hell am not running to the door to be surely trampled to death. Stay low, remain calm, and wait for alternatives.
My opinion. Was thinking last night, I could fill up my Navigator with me driving and five passengers (have room for the family dog) and have about 30% of the voting stockholder onboard. Top five holders, LS, a couple Institutions, Ian, Gurupup and me (with the least of shares) and we could be almost of third of the ownership. Given that, it might take time, BUT I look for this all to get resolved.
Interesting link here I found that provided a little color commentary on Lord Steinberg's death. More interesting to me were the comments about his integrity and business style in the article from an associate of 30 plus years. Given this detail, it adds to the mystery as LS would in my mind not be involved in EGMI if he had not believed in the integrity of the financial statements. AND Note you have a wife, two children and six grandchildren that are left behind to deal with the mess of the current situation
http://www.racingpost.com/news/horse-racing/stanley-leisure-founder-lord-steinberg-dies/650215/
and the pressure builds to answer the SEC and the auditors. Sure will be interesting if the money is there, to find out how this all started and who was involved.
I suppose we now have Kevin's attention, SEC/CPA/4 Lawyers. At least we should. That is the puzzlement to me as no one storyline fits the set of facts at this point logically. And given the Auditor says ONLY one cash account as the issue, logically going back three years makes no sense and lack of responding, KEVIN's responsibility, adds to the mystery.
Great Idea, Kevin Donovan should become a lead plantiff, THAT way the lawyers could be thrown out of court for Conflict of Interest, given the fact, I suspect Stockholder Kevin, is the cause of shooting himself in the foot and asking for a purple heart. LOL
Lee Cole has brought in all the business to EGMI which is a B2B business. That is the enough proof for me. Tell me other than Power Point Slides a contract Kevin has brought to the table. In anycase Kevin is the CEO/Co-Chair and because of that, is the Bagholder for the blame as he wears the most hats.
In time the story will come out, however, the only thing that means anything is the Certification/Audit of the Statements that Mendoza Berger pulled. I think since this is Cash issues and they pulled the last three years statements--hard to believe that they are not going to be in front of the fan when the Sh*t hits.
I think you will have new/different auditors appointed for future years.
If the cash is there, you at 20c would be getting stock for less than net current assets value with the investments and business, for FREE, UNLIKELY, but you never know. Tomorrow, many longs will be saying, "Yea thou I walk thru the valley of the shadow of death, I will fear no evil"
If it trades, then some will panic, When that is flushed out, the rest will probably not trade in great volume until some PR regarding the resolution of the issue. Just my opinion. I know I will not panic.
Market liquidty, WHAT did you think they would say.
I would not believe they would say anything during a period of turmoil and all that is going on. --out of confidentiality alone.
Remember Lee Cole did make a recent trip to China, and that tells me they have a relationship. And now that is the least of our worries in terms of getting out of the sticky SEC/CPA Wicket
YOU WROTE
Here is what ChinaLot Synergy VP/CFO says-
I recently emailed ChinaLot Synergy's VP/CFO (Daniel Liao) asking him to confirm the status of the current business relationship with Electronic Game Card.
Here is the ChinaLot Synergy reply:
"I would suggest you that you talk to EGC directly about your questions."
I find it difficult to find it illegal to postpone a meeting as is in the Lawyers announcement
Lawyers I suppose can make mistakes, and that is not illegal, just incompetent LOL
.
Bad stuff could be anything, Do not read too much or too little into that. Incompetence is bad stuff, ignoring stockholders is bad stuff, Stealing is bad stuff, COULD Be anything.
It is just I believe the bad stuff is NOT that the business is a total fabrication. Even the Auditors agreed in essence in the last 8-K the issue is one cash confirmation on an account.
Just waiting for these all to be resolved and they will --for me the sooner the better, like I said ===if the Sh*t is going to hit the fan, TURN IT ON HIGH and lets get on with it
Well Turn the fan on HIGH and lets get it over. I can deal with poor management, the cure is easy, as the Donald would say, YOUR FIRED, I can deal with someone stealing some cash, as the Monopoly Card says, GO TO JAIL, do not collect $200.
It is the core business and business model that I am trying to protect as EGMI can take a hit and recover as the business model is good, just need a new person then at the helm. With significant owners and institutional holders having a stake, doing that should be easy---I ready to attend the annual meeting and cast some votes
The rest of the month is an opportunity for whomever is at the helm of EGMI to shine and prove their worth.
Serious issues and deadlines happen all thru the remainder of this month each one will determine the future and health of this company, I list a few below, add more if you want.
1.) Resolution of CPA Cash Confirmation
2.) How they handle decision to request or not request extension of halt if issue is not resolved.
3.) Conference Call to stockholders
4.) Potential Mea-Culpa or Phoenix rising Speech at scheduled Roth Conference on 15th
5.) Fourth Qtr 2009 and total year results announcement
6.) Annual Meeting and Proxy
7.) Filling out Management with CFO, and full board with stockholder representative.
8.) Guidance for 2010 -expectations for 1st Qtr 2/3rds of which is already over
9.) Guidance on ChinaLot (Lee did make a recent trip-report please) and other opportunities mentioned in the Merriman Reiteration of Buy Report dated I think 12/23/09
NONE of the above it seems to me to be difficult or require extraordinary management skills. Just diligence and focus.
This company has customers, assets, IP, investments and all the things most over the counter stock strive to get. I just am puzzled how this could in a few months go from Cowboy to CowSh*t as they say.
So whomever takes the bull by the horns, all of the above if handled in a timely, honest, direct fashion will become a positive force for the PPS and all stockholders, large, small, instititutional and do not forget the Estate of LS.
So here is hoping that by April 1st, it will not be April Fools day for all of us.
I will give the company the benefit of the doubt on the value of investments on the 9/30/09 report as values on small companies do go up and down and valuing is difficult. The value of these I assume will be re-evaluated with the year end 2009 statements--and if they get written down, that is fine as well.
Values of non-marketable companies will fluctuate BUT Cash does not disappear without a reason, so I await more importantly the result of the Cash confirmation and the explanations associated with any material variance.
The sooner they resolve and have a CC, the better.
Amazing, Not a single post today about EGMI on Yahoo. What is up, the Bashers playing Golf on Wednesday?
So the calm before the storm. Hopefully tomorrow we get a conference call announcement and an extension of no trade to end as of the CC. That would be the best timeline I think.
If I remember right the option price for AH was 35 cents so if it opens at 20 (which I highly doubt) she is not likely to exercise or sell--which ever the case might be.
Now is a time for calm, I sure as hell would not want to be the first person placing a sell at market order---but I believe by the end of the first or second day of trading, those getting out at any cost will have done so.
Nice to see the wheels turning, but the 8K just filed is showing the process but has yet to come to the result, which is reinstated (adjusted or not) audit opinions.
So while I look forward the the Wed Yvonne/Tomato update, trading is not a foregone conclusion for Friday. First the results, then the CC, then trading is the best ordering of events
Right I understand, what I was saying or meant to say, is the NUMBERS on Yahoo were supposedly pulled from Edgar, but they might be formatted to include selective information.
Again, I said go to the source and that would be 8Q 10K reports as those are official and are filed by the company with the SEC.
So we are in agreement.
Looks like the wheels are/have been turning
Thanks for the alert. 8-K pasted below for those too lazy to click on the link Schismatic provided
Form 8-K/A for ELECTRONIC GAME CARD INC
--------------------------------------------------------------------------------
2-Mar-2010
Non-Reliance on Previous Financials, Audits or Interim Review
Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Audit Report.
(c) Electronic Game Card, Inc. ("EGCI") provided Mendoza Berger and Company ("M&B") with a copy of the Current Report on Form 8-K filed on February 19, 2010 and with a copy of the Current Report on Form 8-K/A Amendment No. 1 filed on February 22, 2010, and requested that M&B furnish a letter as promptly as possible addressed to the Commission stating whether M&B agrees with the statements made by EGCI in response to Item 4.02(b), and if not, stating the respects in which it does not agree.
This Amendment No. 2 to Current Report on Form 8-K is filed for the purpose of adding the correspondence received by from M&B regarding disclosure made under Item 4.02(b) of EGCI's initial Form 8-K filed with the Commission on February 19, 2010 and Form 8-K/A Amendment No. 1 filed on February 22, 2010.
A copy of the letter to the Commission from M&B, EGCI's independent public accountants, is attached hereto as Exhibit 99.1.
I think the numbers are pretty much the same--other than the Gain on the Sale of assets/investments. I compared the press release EGMI Issued and the Yahoo numbers. See my post and they were YTD very close.
I think this difference is probably how yahoo pulls its numbers to create their statements. Again I go to the Source documents from the Company 8Q etc and give them credence over Edgar.
You can debate this endlessly, makes no difference right now, the SEC issue and CPA opinion TRUMPS everything.
NOW HOWEVER, on the balance sheet 9/30/09 Did you see the deposit on inventory or about $ 1.2 Million. Now that since this is a B2B business that deposit means sales in the fourth quarter are likely to follow---that I like as EGMI does not buy inventory for stock, but for customer contracts
Just a quick check to me indicates no issue here.
If you just look at the Yahoo qtrly for 2009
you get 2159 1838 1577 Net Income and that adds for a Yahoo statement 9 months net income of 5574
http://finance.yahoo.com/q/is?s=EGMI.OB
AND THE 10Q PR shows nine months net income of 5473 SO if anything Yahoo bottom line number is about 100K more. I will go with the SOURCE Document rather than edgar and stick with the 10Q as amended in Oct, 2009
LINK http://www.electronicgamecard.com/Investors/PressCenter/2009Releases/PressRelease091120.aspx