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"Jared will answer just about every question he is asked on Tuesday."
Leonidas,
So how many of my questions in this post do you think he will answer - I have submitted them to Mark. Straight forward answers to 4,5,6,7 and 8 especially would go a long way for me.
1. Are the 300 million shares set aside at the start of the buyout process still held separately and not in the float or free trading etc?
2. Is the $2 million related to the buyout still in escrow and with whom?
3. When will Q1 financials be released? Can you tell us know what is the amount of money from accounts receivable at the end of 2008 that has been collected YTD?
4 How many preferred shares are outstanding and what are the conversion rates and dividend provisions on them?
5. How are the formulas being valued and when they were sold into the company, who got paid for them and what amount?
6. When you issued 450,000,000 shares in 2008 to the original lenders what time restrictions were on them and exactly who were the original lenders, how much did they lend the company and what, in addition to these shares were they paid?
7. Who was it that supplied equipment to the company that got paid a large number of shares (approximately 100,000,000) in late 2008 and what equipment was it that was supplied?
8. In the same letter to shareholders you indicate that an unnamed person/organization was being issued 200,000,000 shares. Can you please name who that was and the restrictions on those shares if any?
See December 1 2008 Letter to Shareholders -
FORT WAYNE, IN--(MARKET WIRE)--Dec 1, 2008 -- Since Spring of 2008, many steps have been taken to clear a path for Enzyme Environmental Solutions (Other OTC:EESO.PK - News) global growth strategy which has been met enthusiastically by its associates and shareholders including recent interest in the company's formulas and technologies in odor remediation and conversion of auto residue/fluff into fuel-oil. This, in addition to the interest received on its products for both household and industrial use, has helped further define the company's expansion strategies; however, these steps being in their developmental stages have also caused investors to speculate on the direction the company may be taking.
CEO/President Jared Hochstedler comments, "Much of the speculation and rumors found circulating among shareholders and even directly through our IR as of late is due to the recent issuance of 450 million shares by the company and I want to set the record straight because we have a lot of loyal, long-term investors that have been with us as an integral part of our growth as a whole as well as some new investors that have taken notice of our progress as of late and our overall initiative. The shares that were released over the past three weeks or so were part of an agreement with funding sources from 3-5 years back that helped me get this company off the ground. With everything we have coming down the pike, it's time to make good on those toward collective benefit. As well, there were companies that EESO had liabilities with regarding some of the warehouse equipment and about 200 million shares were released to a party which I cannot divulge yet due to the fact that we are still in negotiations with, but this deal should serve as a major coup for EESO and its shareholders. I want to say firsthand there are no plans for a reverse split and that all shares that have been issued were done so on a restricted basis and issued at a minimum of 5 times the market value at the time issued."
JonPro,
One of the issues that I would have as a shareholder is that Jared stated he gave the 450,000,000 shares to the original lenders in Q4/08.
Take a look at Q2 - Q4 financials and try to make any sense out of them to figure out where those shares went.
Q2/08
Accounts payable - $5,273
Long Term Liabilities 355,000
Flat Rock Mortgage 255,000
Q3/08
Accounts payable - $4.4 million WOW
Long Term Liabilities 3,295,000 double WOW - where did the huge increase come from
Flat Rock Mortgage 190,000
Q4/08
Accounts payable - $5.0 million
Long Term Liabilities 2,521,000 down marginally after the issue of 450 million of your shares to someone
Flat Rock Mortgage 190,000
These are question that NEED answered before I would think this is anything but a money printing press for Jared and friends and family. Go back to my original questions and follow the share trail. It leads you down a very ugly path IMO.
EESO has product and revenue but where the shares have gone and for what reason is very suspect in my mind.
JonPro,
Those are some fairly good questions. Here are some that are even earlier in the DD process that still need solid answers:
Perhaps oneinamillion will be able ot send these to Jared as well. It will be interesting to see which of these he chooses to address.
1. Are the 300 million shares set aside at the start of the buyout process still held separately and not in the float or free trading etc?
2. Is the $2 million related to the buyout still in escrow and with whom?
3. When will Q1 financials be released? Can you tell us know what is the amount of money from accounts receivable at the end of 2008 that has been collected YTD?
4 How many preferred shares are outstanding and what are the conversion rates and dividend provisions on them?
5. How are the formulas being valued and when they were sold into the company, who got paid for them and what amount?
6. When you issued 450,000,000 shares in 2008 to the original lenders what time restrictions were on them and exactly who were the original lenders, how much did they lend the company and what, in addition to these shares were they paid?
7. Who was it that supplied equipment to the company that got paid a large number of shares (approximately 100,000,000) in late 2008 and what equipment was it that was supplied?
8. In the same letter to shareholders you indicate that an unnamed person/organization was being issued 200,000,000 shares. Can you please name who that was and the restrictions on those shares if any?
Questions 6, 7 and 8 clarify ownership of nearly half of the O/S shares and it would be nice to see who has a vested interest in this company as well as the ability to move large blocks of shares at huge profits even at this trading price.
I said it before, IMO, IF there is a buyout, the cash portion will most likely be the $2 million that the Lees supposedly have put in escrow already. That means about 0.001 per share for the commons unless Jared wants some of that for his unknown number of preferreds.
I mentioned yesterday that I think the stock will be something like:
Star Towers Han Bool Enzymes and Other Questionable Illiquid Assets and the Kitchen Sink Inc.
Not sure on the trading symbol yet but wonder if DAWG is available.
Now those 450,000,000 shares that were given to "friends and family" or whomever the original lenders were - they were restricted for an undisclosed period of time and issued at a minimum of 5 times the current value back when they were issued.
Same for the 200,000,000 that were given to an undisclosed organization whose name would be released shortly (and the timing coincides well with WOWgreen - not sure if they got the shares or Allie did himself but...)
Looking at historical trading prices, that means that about half of your float is owned by connections of some sort to this company at a price not likely higher than 0.006 and more likely closer to 0.002.
Hmm, if my restriction was up, I would be pounding the price every time it moved up and I would be selling into every PR as well if I owned 450,000,000 shares with an average spread between current price and my cost of at least a penny if not 0.15.
Now who do we think was selling through VERT and never seemed to run out of shares a few weeks ago?
Perhaps the ones pounding it down were the recipients of the 800,000,000 shares that were issued in Q3/08.
450,000,000 were issued to whomever lent Jared money to start up the company (perhaps check and see who the original owners of the predecessor company were to figure that one out) Have to think "friends and family" would be in this group.
200,000,000 went to what can only be deduced ot be WOWGreen
Another large chunk went to equipment company.
Check EESO PR from last year to verify these numbers.
Given that these three controlled about 1/2 the O/S a few months ago, I am guessing that the ones who pound the price when it tries to move up may be in this group.
Then here is some information that I feel frustrated that I can not get that would help me decide what value I would put on this company. Perhaps someone who has Mark's or Jared's ear will get them to address these in the CC next week:
1. Are the 300 million shares still held separately and not in the float or free trading etc?
2. Is the $2 million still in escrow and with whom?
3. When will Q1 financials be released? Can you tell us know what is the amount of money from accounts receivable at the end of 2008 that has been collected YTD?
4 How many preferred shares are outstanding and what are the conversion rates and dividend provisions on them?
5. How are the formulas being valued and when they were sold into the company, who got paid for them and what amount?
Those would be a nice start IMO.
Leonidas,
A week or so ago I asked this board to show me any stock that has actually been the recipient of a buyout offer that was 500% above the current trading price.
You responded by shouting that PGYC was the recipeint of such an offer right now at 0.57 when the stock was at 0.05 and indicate that this proved that it could also happen at EESO.
What are your comments on how that one is playing out given your use of it as indication that the offers here could be at ridiculous multiples to current trading price?
Allie's record with Gelato di Fresco might be seen as a negative here.
Has anyone gone back and read some of the PRs that were put out by that company. And where is it now?
Trivia Question
How many time zones are there in the world where it has not yet been 11:00 a.m. on May 21st, 2009?
Once we know that we can have a countdown on them until we are down to NONE.
Dimiwtted,
Why not ask who will give you 10 cents per share since everyone is convinced that the "value" of the company is much more than that.
Leonidas, note I did not say market value as I know you do not believe in the market.
And on that note Leonidas, can you please tell me what your value of EESO is and how you come up with that without referencing what Jarred says it is worth but based on what you know of the company.
Thanks.
Alaskanwarrior,
I am Canadian. Please tell me what my dollar symbol looks like? I am really curious as I seem to have been using the wrong one all these years.
So, if no R/S in future, where does Jared get money or something of value to pay for any bills going forward?
He is out of shares right now. He went through 1.75 billion shares to pay for bills in the last 12 months - what will he use to pay for bills in the next 12 months? The accounts receivable that is uncollected at the end of 2008 that all seems to relate to the magic numbers that he came up with in Q3/08.
He has no cash right now according to the financial statements and he is also out of his proxy for cash (shares in the company).
His options are:
1. Reverse Split the shares with no "buyout"
2. reverse merge another company into this one and reverse split the shares
3. Pay bills with Big Mac coupons - worth much more than EESO shares and no expiration date unlike what may be coming for EESO shareholders
"The market will look at the share value,in dollars,and react accordingly."
Only if the share value is verifiable.
Look at PGYC which has a 57 cent cash buyout on the table right now and two days until it is voted on and should be accepted. And the stock trades at a nickel right now.
If CASH is discounted that much in pink sheets companies then can you imagine what discount the market will apply to shares in Han Bool Inc. Tell me, what would you pay for the whole of Han Bool right now given what you know of them? What is their value?
Same question for Star Towers Inc.? What is it worth to you because that is likely what you will own in 180 days.
Yes, cash from a company that is obscure and untracable is not worth much. Shares from that same company would be worth even less IMO no matter what value they put on those shares when they vend them into the NewCo. You will have no say in what they value those other properties and assets at when they do this - you just have to live with it - not unlike the value of the formulas that got sold into your company for some unknown amount of shares.
You asked if you woudl get shares in some new company. Here is how I see things happening from here forward.
Shareholders will end up owning Star Towers and any other company and asset that the Lees have that is of undeterminable value. (Anyone know how sales are going at Star Twoers because you will want ot in the near future?)
And their friends at the other companies that have been mentioned will also vend their companies into this one at values that are undeterminable.
So, maybe you all get restricted shares in a company called "Star Towers and Han Bool Enzymes and The Kitchen Sink Inc." Along with maybe .001 cents per share - you can split the $2 million that is supposedly waiting in escrow right now.
Your new shares will be restricted for a period of time - 180 days etc so you can NOT sell them at any price - hope you do not need your cash.
Then they do the reverse split and you get one new share for every 100 you own now. Then they flood the market with more shares that can and do trade until the 180 day restriction is over and the value of your new shaes is right back to where these ones are or close enough that the whole 20 cent buyout that seemed a great deal turns out to only be a way for the Lees and their friends to moentize assets that are currently illiquid and of questionable true financial value.
Just my best guess on how this will play out - pink history said it would be the Lees who presented the buyout - pink history also says that if this buyout occurs, what shareholders get once they are able to cahs out will be right around what you have now or less.
Jared may not do a reverse split but the new owners have never promised this....
Seems gloomy but just go through the history of pink sheets stocks and this sounds about right unless this is the 1 in 1000 pink whose buyout is legitimate.
Also my main opposition to this theory is that we have no clue at all at the share structure and how many preferred shares are out there. This will make a big difference in case of a buyout.
This is the big question that someone needs to ask for next conference call.
How many preferreds are there and what is conversion rate into common shares.
Here is what I have found on the record as presented by Jared:
From Jared's financials (unaudited)
At end of Q1/08
Accrued Officer Salary (likely Jared) $775,000
Loan From Shareholder (Jared?) $121,908
Payable to Consultants (belmont?) $1,450,000
Formulas values at $567,251
SHARES OS is 223,000,000
AT end of Q2/08
Accrued Officer Salary (likely Jared) $NIL
Loan From Shareholder (Jared?) $NIL
Payable to Consultants (belmont?) $NIL
Formulas valued at (50,000 each) $2,350,001
SHARES OS is 864,252,500
Preferred (Owners Control) $200,000
Wonder who got paid how many shares that quarter to settle the outstanding bills owed by the company and to account for increase in value of formulas?
Q3/08
Formulas valued at (??? each) $3,351,001
SHARES OS is 1,692,609,857
Preferred (Owners Control) $2,401,861
How does that go up without their being an issue of preferreds convertible at who knows what rate?
Q4/08
Formulas valued at (??? each) $4,275,168
SHARES OS is 1,692,609,857 (no change)
Preferred (Owners Control) $4,330,219
And those of you with common shares think you own this company?
Just keep computer focussed on EESO chart and it will self-correct.
Even buyout is done in the pinkie land maynot end up being good news.
Nice thing for EESO shareholders is they can watch the progress of a "done buyout" at PGYC and see what may or may not be ahead for them.
That buyout is 57 cents cash and the shareholder vote is in a day or two. Stock sits at a nickel right now. Why would shareholders not vote in favour? I DO NOT OWN PGYC - as they buyout is from their biggest customer who is only somewhat verifiable at best. (Sound familiar)
The latest PR is about a previous owner selling shares maliciously to keep the price down (perhaps we will have a similar PR coming around Belmont or someone else doing the same)
Recent PR there also says that buyer has accumulated shares in the open market to lower the total they are going to pay for the company - I am guessing we will see a similar PR here in the coming weeks.
They all seem to play out the same in pinkieland so keep an eye on the twists and turns at PGYC to see if you cna predict what is next for EESO because they are a few weeks ahead of EESO in this process.
Good luck.
I currently have no position in EESO and will not until I see some audited numbers by an accounting firm other than Dewey, Cheatem and Howe.
Here are some interesting numbers that not everyone may know:
From Jared's financials (unaudited)
Q1/08
Accrued Officer Salary (likely Jared) $775,000
Loan From Shareholder (Jared?) $121,908
Payable to Consultants (belmont?) $1,450,000
Formulas values at $567,251
SHARES OS is 223,000,000
Q2/08
Accrued Officer Salary (likely Jared) $NIL
Loan From Shareholder (Jared?) $NIL
Payable to Consultants (belmont?) $NIL
Formulas valued at (50,000 each) $2,350,001
SHARES OS is 864,252,500
Preferred (Owners Control) $200,000
Wonder who got paid how many shares that quarter to settle the outstanding bills owed by the company and to account for increase in value of formulas?
Q3/08
Formulas valued at (??? each) $3,351,001
SHARES OS is 1,692,609,857
Preferred (Owners Control) $2,401,861
How does that go up without their being an issue of preferreds convertible at who knows what rate?
Q4/08
Formulas valued at (??? each) $4,275,168
SHARES OS is 1,692,609,857 (no change)
Preferred (Owners Control) $4,330,219
And those of you with common shares think you own this company?
Q1 numbers shoudl be fun to see.
Any comments on any of this?
But what are the amrgins on the sales to WOWgreen. You have to think much worse than when EESO was selling direct to the end consumer.
A year ago (May 6, 2008) this company had less than 250 million shares OS.
It now has nearly 2 billion shares and some wonder why the price is not moving up. That is a lot of people being paid off in shares that just want their money from them so they can pay their bills.
Now how is Jared going to pay people in the future if he is at his limit on shares OS and his creditors are not paying him?
If he paid a chemist to come up with the formulas, shareholders should care because he charged the company millions of dollars for the formulas by vending them into the company in exchange for shares or cash.
If he paid a chemist $10,000 per formula and then sold them to the company for $50,000 each or more then he made a nice profit at shareholder's expense.
Why did the company not pay the chemist? Why did Jared pay the chemist and then sell the formulas for much more than they cost him or a predecessor company if this is true?
lbdave,
Then why are EESOs margins so low in all of their unaudited statements to this point? They have been selling high margin consumables all this time. and do you think that when (if) the financials are finally audited they will look better than the ones Jared through together? If so, I have a bridge that overlooks some lovely swampland that I am selling as a package deal.
And as a poster before me said, they question if EESO's take is even close to the $2 million mark. Sounds like it would be closer to $1.5 million for this amount of sales - before costs.
Pilot,
With 45,000 WOWGreen distributors at $75 per month, that equals $3,375,000 in sales but not by EESO, it is $3,375,000 in sales by WOWGreen.
Even if EESO charges WOW $2 million for this, they do not have the margins to even make much if any profit on a monthly basis from these orders.
WOW needs alo more distributors selling a lot more product to make money for EESO shareholders. But, as always, the people at the top of the MLM pyramid will do fine.
Pilot,
I think the question is more about the 300 million that were supposedly set aside but the chart might indicate have actually been sold into the market over the past few weeks.
Wish there was a way to determine if these are still "set aside" but I am doubtful they are not now part of the float and have been sold into this market to fund the trip to South America and other investory and equipment.
IMO
Sorry I meant a tenth of a penny a day and not a penny a day.
Same direction though.
Let's all pick a day and make predictions on when the stock next goes to sub-penny. Does not need to stay there. Just make it there.
I pick Friday May 22nd. Looks like it is losing a penny a day give or take since the astounding (predictable) buyout offer. That means that sub-penny is within reach by EOD Friday.
Will blow through whatever support there is before that IMO so those with standing buy orders on the way down better be confident that they truly want those shares and to potentially lose that money as this one is headed down the drain.
No, I implied that EESO set up that website to be a distributor of WOWGreen products (after they had signed an exclusive retail agreement with WOWGreen) and that the website no longer exists.
I know WOWGreen exists. EESO touted thsi site as a revenue generator for EESO - top of the MLM food chain - and it does not even exist as a website.
And if they set it up after being a distributor themselves then they did not read distributor agreement and if they set it up after granting exclusive to WOWGreen I woudl ahve thought that WOWGreen woudl ahve known that they were doing so and had it in agreement that they could or could not be distributor as well.
I am guessing that the stock will be different if you are in the US versus Canada. In addition to cash - likely South Korean currency;
US investors will get stock in Madoff Investments Inc.
Canadians get some shares of a promising mining company called Bre-X.
May be different company names in the end but valuation likely the same!
Wipeout pens - no longer available as never paid the supplier the stain pens are no longer available because of the wowgreen agreement
Okay, I will give you that one but there is also evidence that original supplier of pens had to sue to even be paid. And since WOWGREEN started in 2009 can you tell me what volume of pens were sold in 2008 towards Jared's projection of 20 million pens?
wowgreenlaunch website - not active the website was taken down due to agreement with wowgreen
But they announced this website AFTER they announced the WOWGreen exclusive
mexico retail distribution never updated as promised EESO no longer deals with the retail side of the business
This one was PRd 7 months before the WOWgreen announcement and there was no update as promised in the Mexico announcement.
It is a pinky. It is very risky. There are no guarantees. You could lose ALL your money investing in it. However, I am a believer. I believe in EESO and Jared. I have never doubted them. I have never let them down.
It is not up to you as a shareholder to not let them down. It is up to them to not let you down and there are way too many instances in the past where they have let shareholders down and too few where they have met expectations with verifiable action and results.
So this actually has nothing to do with my question of which two movies is EESO product going to be in as PRd last year and indicated that production would be done by end of 2008 - might be a good question to ask in CC on the 26th along with all of the unmet projections of the past.
Wipeout pens - no longer available as never paid the supplier
Website sales - not even possible
wowgreenlaunch website - not active
mexico retail distribution never updated as promised
the list of broken promises and SWAG sales projections that are no where near reality goes on and on.
Anyone, I asked for 5 projections taht they had met to counter my 5 that they had horribly missed. I will drop it to 4 right now. I am guessing no one answers until I am down to 1 or maybe even ZERO.
Is Celebrity Moms a movie? Never heard of it. PR said product would be featured in two movies.
I originally asked Leonidas for a response to this but I will open it up to anyone here who believes in this company and their PRs:
Let's look at history for a moment:
June 11/08 PR says sales in next 12 months through International Pacific Sales will be $2 to $4 million. I am guessing it has been closer to $100,000. Any doubt created by that PR?
July 10/08 PR for wipeout pen says sales by end of 2008 will be $3 million and on July 16/08 PR Jared upped the target to 20 million pens by the end of the year - let's call selling price as $1 so total projection is now $20 million conservatively from the pens. It now appears that EESO may never have even paid for the pens as I believe they are being sued for payment. Any doubt created by that PR?
July 10/08 PR also says that Mexico retail distribution is just around the corner and will be updated soon - no projections attached for sales numbers but nearly a year later and we are still waiting for the update on that one. Any doubt created by that PR?
August 08 PR says product will be featured in two movies being produced by end of 2008. Name them for me! Any doubt created by that PR?
Jan 23/09 EESO becomes a WOWGreen distributor and launches www.wowgreenlaunch.com so we can all sign up beneath them to add ot their revenue stream. Anyone able to even get to that site? Any doubt created by that PR?
Feb 09 PR projects $136 million sales by end of 2009. They better ramp up soon since by my count the only verifiable (non-Lee related) sales have been to a Health food store in Fort Wayne and a bottle or two of cleaner to the local McDonalds. I am guessing there is about 135,999,800 left to be booked to hit that target. Any doubt created by that PR?
Leonidas or anyone else, name 5 projections that EESO has hit in the last 12 months to match my ones they missed. (And I have not even mentioned the GC2000...)
As well, please tell me your best guess or the actual truth of where the Q3/08 sales of many millions came from - and DO NOT say retail as the website was not even set up then and even if it was retail, none of them have paid 3 months later??? (check the accounts receivable at year end) Why woudl retail customers even be granted credit. Just give a credit card number online and be done.
Anyone able to answer any of my questions here?
leonidas,
where did the millions of dollars of sales in q3/08 come from?
leonidas0,
"The buyers' estimate the value of EESO which is definitely not reflected in the value of the stock. It is reflected in the contracts and projections under way or in the near future. This is what Jared says, and it is what I believe in. When I start having doubts about what EESO tells me, I will voice my discontent and everyone up here will hear me."
Let's look at history for a moment:
June 11/08 PR says sales in next 12 months through International Pacific Sales will be $2 to $4 million. I am guessing it has been closer to $100,000. Any doubt created by that PR?
July 10/08 PR for wipeout pen says sales by end of 2008 will be $3 million and on July 16/08 PR Jared upped the target to 20 million pens by the end of the year - let's call selling price as $1 so total projection is now $20 million conservatively from the pens. It now appears that EESO may never have even paid for the pens as I believe they are being sued for payment. Any doubt created by that PR?
July 10/08 PR also says that Mexico retail distribution is just around the corner and will be updated soon - no projections attached for sales numbers but nearly a year later and we are still waiting for the update on that one. Any doubt created by that PR?
August 08 PR says product will be featured in two movies being produced by end of 2008. Name them for me! Any doubt created by that PR?
Jan 23/09 EESO becomes a WOWGreen distributor and launches www.wowgreenlaunch.com so we can all sign up beneath them to add ot their revenue stream. Anyone able to even get to that site? Any doubt created by that PR?
Feb 09 PR projects $136 million sales by end of 2009. They better ramp up soon since by my count the only verifiable (non-Lee related) sales have been to a Health food store in Fort Wayne and a bottle or two of cleaner to the local McDonalds. I am guessing there is about 135,999,800 left to be booked to hit that target. Any doubt created by that PR?
Leonidas, name 5 projections that EESO has hit in the last 12 months to match my onnes they missed. (And I have not even mentioned the GC2000...)
Can anyone tell us where the huge Q3/08 sales were from?
Leonidas0,
"And, by the way, everything is mathematics."
Since you said this, please provide me with some mathematics that leads to EESO being worth at least $200 million right now as that is waht the value would be at 10 cents per common share (and assigning no value to the unknown number of preferreds that are out there).
Primarily use mathematics to show me this current valuation as a minimum for what EESO is worth.
Thanks.