An email to MP from Raider. Good job Raider.
Malcolm,
Thank you for your note.
I appreciate your attempt to rationalize the lack of progress this company has seen under your leadership.
The bottom line is that you have done a less-than-stellar (I’m trying my best to be nice) of moving this company forward in your eight years as CEO. The bottom line is that thousands of investors have lost billions of dollars in this investment under your tenure. Your assertion to numerous investors, including this one, that CDEX would be operating in the red as early as 2006 simply has not come true, then, now, or anytime in between. Our annual revenues, touted by you as "record" almost each and every year, have grown insignificantly in your eight years as CEO. Our last reported annual revenues, for the year ending October 31, 2008, long before the recession that you cite as a major reason for this company's poor performance, were a little over $800,000. The vast majority of mom and pop convenience stores do over $800,000 in revenues each year in their first year of operation, yet seven years after you took over, we were still under $1 million in annual revenues.
No other publicly-traded company in the history of America would look at this eight-year performance and hire the former CEO as a consultant to do the same job. Yet, CDEX did. This is unbelievable to anyone who believes in management accountability.
Although it's easy for you to blame the downturn in the company's PPS performance on the economy, the charts show a much different story. On August 10, 2009, with you leading our company months before the financial collapse that started in October 2009, the company's stock closed at .06, with a low of less than 5 cents. On December 14, 2009, at the height of the economic downturn, the stock price closed at .05. As you can see, and as the charts attest, the downturn in our company occurred before the deep recession faced by our country. This downturn occurred on your watch.
Looking at your performance long-term provides an even more sobering assessment. On March 7, 2005, the stock price closed at $1.35. Yesterday the stock closed at .075 or only 6 percent of its value almost exactly five years ago. In other words, if someone invested $10,000 in CDEX on March 7, 2005, when you clearly were leading our company, yesterday that investor had only $600. For all but a little less than one year during that time period, you were at the helm of the ship. Instead of growing shareholder value, the value to shareholders has declined precipitously.
For you to try to avoid blame for the terrible PPS storm caused by the lawsuit is kind of like assigning blame solely to President Barack Obama for the recession that continued into 2009. The table had been set under your leadership, Malcolm, just as the table had been set under President George Bush and previous administrations for the recession faced by America in 2008-10. I was told by a person whom I trust that you, Malcolm, knew about this lawsuit long before you left and that certain actions taken by you could have avoided the legal fees and decline in the PPS caused by prolonged legal uncertainty. Unfortunately, according to my sources, your stubbornness once again cost this company. Whether or not this is true or just another "rumor" made up by your detractors, your timing was impeccable in leaving the helm before the lawsuit was filed, but returning to the wheel after it was settled.
Whether you want to admit it or or not, Malcolm, you have done a less than admirable (again I’m trying to be nice) job as CEO, and your actions and lack of leadership have cost investors billions. Perhaps you did some good things in the beginning, and I'm sure you did, but in my opinion, and in the opinion of dozens of other investors and employees who talked with you often, your stubbornness and ego prevented this company from reaching its true potential.
You just don't get it, Malcolm, and you never will. From our very first phone conversation, I sensed a sincere disdain for the average shareholder. In our most recent conversations, I sensed the very same arrogance that I felt on that very first call. You bragged how easily it would be for you to take the company private or bankrupt. Any CEO of a publicly-traded company who would brag at taking action that would harm shareholders is despicable in my book.
Most CDEX investors are good people, Malcolm, but they have lost billions of dollars, as well as their hopes and dreams for an early retirement and the opportunity to pass on a better life to their children. If shareholders felt that you had sincerely tried your best but failed, they would be disappointed, but not angry. But knowing what I know now, after talking with so many people who have had dealings with you over the years, I realize that your stubbornness and ego were routinely put above the best interests of the company and its shareholders.
That’s inexcusable. Yet, you remain in control of the company you have all but bankrupted.
Congratulations, Malcolm. You have done the one job you set out to do -- maintain control of the company!
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