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BULLISH:O/S may be reduced by 200-400Million
What I wrote (in post IM responding to) is bullish because it could reduce the O/S by between 200 and 400 million shares once they are properly accounted for and retired to the treasury.
The PPS is already responding to this news.
read the post I'm responding to.
200Million+ Escrow Shares unaccounted for.
Copy and paste before Im booted for good. I posted a link to this yesterday but it was removed. I had it sneaked into my NIPI box, but it's gone now. Sorry to bring this but Im still long FCCN/AERO and believe in the new management and product.
ARE "200 MILLION +" FCCN Escrow shares MISSING?
DO NOT PANIC. THIS DOES NOT EFFECT AERO FUNDAMENTALS. ACCORDING TO SEC DOCUMENT ANALYSIS, AT LEAST 200,000,000 SHARES OF FCCN STOCK WHICH WERE ALLEGEDLY TRANSFERRED TO GGI, ARE NOT ACCOUNTED FOR. IMO, THE 8K IS BEING DELAYED BECAUSE OF THIS ISSUE.
I need to get this information public in order to be fair to all those who may have been influenced to buy or hold FCCN based upon what I have written.
THERE MAY BE OVER 200 MILLION SHARES GONE MISSING FROM THE GGI ESCROW ACCOUNT ACCORDING TO SEC FILINGS UP TO AND INCLUDING
THE 10.01.07 "10K".
PERHAPS THE 8K WILL EXPLAIN WHERE THEY WENT. IT WAS "SUGGESTED" (TRIAL BALLOON STYLE) TO ME THAT THE "EXTRA" SHARES WERE GIVEN TO GGI "TO GET RID OF THEM" BUT THAT WOULD SEE GGI GETTING 10 TIMES MORE SHARES TO DUMP THAN THE CONVERSION FORMULA CALLED FOR SO I DONT BELIEVE IT.
GIVING THEM 10 TIMES THE SHARES THEY WERE DUE MAKES NO SENSE. IT JUST WORSENS THE SITUATION AS TO GGI.
From the 10.01.07 "10K":
"In November 2006, the Company agreed to settle litigation with Golden Gate Investors on a past-due convertible debenture having a principle balance due of $220,927. Under the terms of the settlement, the Company placed 843,818,400 shares of its restricted common stock into an escrow account for satisfaction of the debenture. Golden Gate is allowed to withdraw the shares from escrow provided that their overall holdings in the Company do not exceed 4.9% of all issued and outstanding common stock. The debenture obligation is reduced by 80% of the average of the five lowest closing bid prices of the Company’s common stock over a 45-day period prior to the share withdrawal multiplied by the number of shares being withdrawn. As of September 25, 2007, under the terms of this settlement, 400,287,345 shares have subsequently been released from escrow and the debenture balance has been reduced to $35,694."
843,818,400 - 400,287,345 = 443,531,055
443,531,055 - 400,000,000(RETIRED SHARES) = 43,531,055
The five lowest lows of the day for the period stated in the formula were:
.009 + .009 + .009 + .01 +.01 = .047
.047/5 = .0094
.0094 x .8 = .00752
.00752 x 4,746,542 = $35,694
But according to the 10K 43,531,055 shares were given to GGI to finish off the debenture NOT 4,746,542.
43,531,055 - 4,746,542 = 38,784,513 shares not accounted for.
The GGI debenture update and formula listed in the June 7, 2007 10K must provide an accurate conversion for all shares drawn down from escrow for time period discussed in the June 7, 2007 "10K" through the October 1, 2007 "10K". Look at the June 7th 10K and do the math...
From 06.07.07 10K:
The debenture obligation is reduced by 80% of the average of the five lowest closing bid prices of the Company’s common stock over a 90-day period prior to the share withdrawal multiplied by the number of shares being withdrawn. Under the terms of this settlement, as of May 23, 2007, 227,267,345 shares have subsequently been released from escrow and the debenture balance has been reduced to $92,854.
So this one traces the multiple back "90 days", while the October 1st "10K" only traces it back 45 days. I will do the math using both sets of numbers.
From the June 7, 2007 "10k":
"Under the terms of this settlement, as of May 23, 2007, 227,267,345 shares have subsequently been released from escrow and the debenture balance has been reduced to $92,854."
843,818,400 - 400,000,000 (retired shares) = 443,818,400 total shares "allegedly" given to GGI
443,818,400 - 227,267,345 = 216,551,055
The most recent numbers from the October 1st "10k" are:
843,818,400 - 400,287,345 = 443,531,055 - 400,000,000 = 43,531,055
According to the last "10K", 43,531,055 remained and this is the number you have "suggested" was subject to the alleged settlement agreement.
So, between the last two 10K filings, 173,020,000 shares were drawn down by GGI using the formula listed in both 10K filings:
216,551,055 - 43,531,055 = 173,020,000
Now for the amount of monetary debt.
$92,854 - $35,694 = $57,160
So, using the conversion formula $57,160 should convert to 173,020,000 shares.
The only difference in the formula between the two 10Ks was the number of days GGI could reach back to get the conversion multiple numbers.
10.01.07 10K = 45 days
06.07.07 10K = 90days
I will do a conversion using both sets of numbers.
.009 + .01 + .01 + .01 + .01 = .049
.049/5 = .0098
.0098 x .8 = .00784
.00784 x 173,020,000 = $1,356,476
$1,356,476 obviously does not equal $57,160
45 DAY CONVERSION
Going back 45 days from May 23, 2007, the five lowest lows of the day were:
.01 + .01 + .01 + .01 + .01 = .05
.05/5 = .01
.01 x .8 = .008
.008 x 173,020,000 = $1,384,160
$1,384,160 also does not equal $57,160.
$1,356,476 - $57,160 = $1,299,316
$1,299,316/.00784 = 165,729,081 shares
165,729,081 shares missing for this time period.
165,729,081 + 38,784,513 = 204,513,594
204,513,594 SHARES MISSING FROM THE GGI ESCROW FOR THE TIME PERIOD FORM MAY 2007 TO THE PRESENT.
I don't know how many shares might be missing for the time period before May, 2007.
If there was some kind of "deal" made here, it was not a "settlement" at all.
There are only three plausible scenarios I can see:
SCENARIO #1: AERO drew down shares from the Escrow account.
But the following wording of the "Subsequent Events" section of the last 10K trips this theory up:
"Subsequent to June 30, 2007, an additional 126,600,000 shares of the Company’s common stock was released from escrow to Golden Gate Investors under the terms of the Settlement Agreement, bringing the total amount of shares released to Golden Gate to 400,287,345, with a balance on the debenture to convert of $35,694."
If 443 million shares were "released to" GGI, AERO was not a second beneficiary of the escrow, certainly not directly anyway.
I originally thought that has been the case. But it appears I was wrong.
SCENARIO #2
The Escrow agreement between GGI and FCCN included a clause where GGI acted as custodian for hundreds of millions of shares from the escrow which were exchanged for AERO stock at the close of the deal.
This option is highly unlikely. But it would be great if they worked it out this way.
SCENARIO #3
Something sinister happened.
I'm not saying hundreds of millions of shares were embezzled from the Escrow account, I'm just saying the numbers just don't add up.
If scenario #3 is real, there could be a shareholder lawsuit and full complaint filed with the SEC.
165,729,081 + 38,784,513 = 204,513,594 shares MISSING...
ALL OF THE SEC FILINGS INDICATE THAT THESE SHARES ARE NOT ACCOUNTED FOR BY USING THE CONVERSION FORMULAS LISTED ON THE LAST TWO 10k FILINGS.
the original formula shown below was also suggested to me by a friend of the stock (trial balloon style again) as containing the answers, but it doesn't work out with the last two 10k filings.
http://www.pinksheets.com/edgar/GetFilingHtml?FilingID=4909741
This formula was superseded by the ones testified to being used in the last few 10K filings with the SEC. The old formula has been obsolete for a long time.
SO THE QUESTION REMAINS, ARE THERE 200,000,000 OR MORE SHARES NOT ACCOUNTED FOR?
I don't think the stock has a chance of running unless these shares are properly accounted for.
Nothing in this analysis effects the fundamentals of AERO EXHAUST, it will actually result in a better PPS and a lower O/S once these shares are accounted for.
While many people would have sold their shares before posting this information, I have held mine because I do NOT want to profit from this. I AM LONG FCCN/AERO and have not sold one share. And I can prove it. Current pps is .0145 12:52 PM as I write this.
Everyone knows I'm long FCCN/AERO. Look at my posting history.
Very Truly Yours,
INMS
NIPI alert for FCCN!@
whoa! went surfing, yeah baby! NIPI red alert.
today for me =
A day in the life of a Super Hero...
Today, for me, fighting the forces of darkness on the FCCN board was equivalent to Nick Fury Agent of Shield #7
from 1968
Art by Jim Steranko, the cover is sometimes referred to as "The Dali Swipe" in Overstreet Price Guides.
I hope Rusty has a ton of shares.
Geez, if they are savvy enough to hold back cash and pay him with stock, then Rusty has an ongoing incentive to make the AERO name grow.
That's amazing busines sense on the part of Hunsaker.
If they had just paid Rusty cash, he has no further incentive once the check clears to boost the AERO name, but paying him in cash is genius. He stays on the team forever that way without paying anymore cash.
Thanks for pointing that out. Nice one.
The AERO D&B credit report is outstanding.
Or you would have provided a screenshot. You're not shy DERB.
You have never backed away from showing down a good hand.
If you had a screenshot, we would all be chewing on it.
The AERO D&B credit rating is in the top percentile.
The D&B must show sweet AERO credit rating.
Because if it wasn't good, a screenshot would have been stuffed down out throats by now. You can bet on that.
Besides, I asked Borat to have a look at the D&B credit rating. Here's the Borat DD:
"I like. You like? I like AERO credit rating berra berra much. I read it naykud with cheese. I like. I like America. Aero muzzler go zoom. I share goat milk with ah, as you say... D&B family. They hav pet goose. He love me. I like. I like AERO berra berra much."
Im excited about the Expo! NIPI!!!
Yipppeeee. Me like.
"Ah, me berra berra exsocited for a, as yule say, ahh Balue bich Esposa. COwderera Part tunrer. Me like. Uh. You like. I like berra much," said Borat who will be attending and singing the national anthem ins a SPOOZ suit.
NIPI yippeee yahooey!
The difference Stew,
is that DWP manufactured false evidence.
Andrew has just said, "The 8K will be out when it's out."
Andrew has told the truth, and DWP has posted bogus info.
You have a point, however...
Since nobody has posted any DD from that site, why are we even talking about it?
If there was anything to talk about, you bet your bottom somebody would have come up with something. But nobody has.
Why don't we discuss what credit rating was given to AERO by The Mull Historical Society? It would lead to the same amount of DD.
No DD. None. Nada. Zilch. Zippo.
No D&B due diligence was posted here.
Nobody has shown any DD on AERO from D&B.
End of story.
Batter up.
Got that screenshot?
Certainly, the board would appreciate any confirmed DD. You posted a "stress credit score" but you never posted a screenshot.
If you have the stake, why not put it through the heart?
Seriously. Rise .
D&B is a non-issue...
It was a hoax, no screenshot was ever provided. If the person responsible for the original bogus D&B listing had a genuine screenshot when challenged, you can bet the ranch they would have posted it in a big dayglo frame for all to see. But that individual skulked out of Dodge quiet as a mouse.
Fraudulently manufactured D&B listing posted here is grounds for Libel. If that is what happened, I would expect a call from AERO's lawyers.
Regardless, the sheer audacity has to be bullish. If people are willing to document Libel while leaving an IP trail, they must have alot to lose if AERO pps rises.
Think about it.
I am NOT on 8K watch...
I've earned a nice meal.
I was doing DD on HYPF and hydrogen fuel cars.
And somewhere along the way I found my way to this interesting, but very bizarre world of Mr. Rivera.
SYMBOL CHANGE = PAIN.
Oh boy, I forgot about that.
berra berra nice. That will force them to clear their short position soon. "I like. Do you like? I like bera berr amuch," said Borat.
You mischaracterised what Hunsaker said.
You implied Hunsaker pumped before Miller bought.
You mischaracterised what Hunsaker said. I don't know why you have put it this way? You are clearly an intelligent person, so maybe I misunderstood what you meant. Please explain it to me. Here is what you said:
"In casual conversation as a prelude to selling private equity you are bound to put your best foot forward and extolthe virtues of your company."
Since you admit that Hunsaker only mentioned the 1 million in sales AFTER Miller bought shares, then what is the relevance of your quote above, specifically the use of the term "prelude".
Read this and DD it for FCCN short 411
http://www.thesanitycheck.com/BobsSanityCheckBlog/tabid/56/EntryID/395/Default.aspx
look at the comments and study that site
also,
see this
http://www.businessjive.com/
Hunsaker denied it was in "prelude"
You misquoted Hunsaker:
You said:
In casual conversation as a prelude to selling private equity you are bound to put your best foot forward and extolthe virtues of your company.
Hunsaker denied he made those statements in "prelude" to the Miller Trust buying shares in AERO. Quote the man straight.
Hunsaker testified he made the "1 million sales" statement "after plaintiff had purchased the shares."
This is the second time today you've been caught misquoting people. I asked you respectfully to correct yourself and be a gentleman about it. I hope you will apologize so that people do not get the wrong impression and think you might be trying to defame Mr. Hunsaker.
It's on the screen shot...
see the original post or click the link below and when you get there click "Check Availability" on the right side of the page
http://individuals.interactivebrokers.com/en/trading/ViewShortableStocks.php?key=fccn&cntry=usa&....
Please do not misquote me Earnie.
Let's try to keep fair. I respect you're trying to help people make an informed decision, but I don't think it's right that you have misquoted me. I hope you will acknowledge the mistake so that nobody takes it the wrong way. You don't want people to think you are "intentionally" misrepresenting what other people say.
This argument started from post # 90871 where I said the Miller Trust "...tried to wrestle a great deal of control away from the AERO board."
Your last post erroneously stated:
You said that the Millers were trying to take control.
That is not true.
You're statement is, in fact, not true.
Here is the link to what I said.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=23693783
Pinksheets.com short# doesnt include naked shorts
Interactive Brokers are off shore...
http://individuals.interactivebrokers.com/en/trading/ViewShortableStocks.php?key=fccn&cntry=usa&....
Off shore naked shorts are not included in the Pinksheets.com accounting.
"Wrestle away" = Loss of control
I said the Miller's tried to wrestle control away from Hunsaker and the BOD. If the court would have appointed a receiver, Hunsaker and team would have lost control of AERO...
But the Miller Trust failed to "wrestle control" away form Hunsaker and team.
They failed miserably.
And they lost money because they expended resources to sue, and in the end they get nothing more than any other AERO shareholder because their suit had no force.
Court appointed receivers report to the Court, not to the Miller Trust.
Nobody can deny NITE is short so SQUEEZE.
It's like a tug of war.
Perhaps exposure will slow NITE down.
**ABSOLUTE PROOF** NITE IS SHORTING FCCN
The screenshot below is from the Interactive Brokers web site. Click the link below to go to their page for "shorting" FCCN.
- Click "check availability".
Nite is offering a 350,000 share block to short right now. Keep this link bookmarked and you will see the fluctuations.
And that's just for now. Last time I looked they were offering a 500K block. Now how many blocks do you think they've shorted total?
You can't have a short squeeze if you don't have short availability. We have proof of shorting.
http://individuals.interactivebrokers.com/en/trading/ViewShortableStocks.php?key=fccn&cntry=usa&...
PROOF Miller Trust failed AERO take over:
The "Prayer for Relief" in the Amended Complaint is the proof. They were using the law suit to dictate how the Board of Directors should do business.
- #6 in the POR they wanted the court to appoint a "receiver" to "manage the affairs of the company."
TO MANAGE THE AFFAIRS OF THE COMPANY = TAKEOVER ATTEMPT
- #3 in the Prayer for Relief, page 19, they wanted the Morgan McLure deal nullified.
Who the company sponsors is a BOD decision, not a shareholder decision.
- #4 in the POR, page 20, they wanted Sutero put back on the BOD.
In the end the Miller's lost, because they had to pay Attorney's fees, costs of suit and expenses and in the end will get no more than any other AERO shareholder.
IPO = No $10 million tax credit
AERO got a $10 mil tax credit for doig the RM with FCCN.
So, the RM made more sense on the bottom line.
The MILLER'S believed AERO a score...
That's why they put 500K into it.
And that's why they tried to take it over.
It's not where you're from it's where you are going.
NOT URBAN LEGEND: see this
There are claims... or urban legends... that...
many stocks get ruined by naked shorting into bankruptcy because they cannot raise capital to continue.
The following link leads to a presentation every investor needs to see. It's a work of genius.
It explains, as if it were a detective noir, exactly how the so called urban myth, is in fact real.
http://www.businessjive.com/
NICK FURY - Agent of SHIELD!
IMO Miller trust tried to take over AERO...
They knew EXACTLY what a "score" AERO was/is and they tried to wrestle a great deal of control away from the AERO board.
Their take over attempt failed and they settled for a paltry security lien on their 500K investment which is a net loss for them since AERO is going to be worth more than .03 and the Millers had to pay Attorneys fees and costs of suit and in the end they will not get a penny more than all of the other AERO private shareholders who had faith in Hunsaker.
That is confirmation.
I have noticed and experience in my own SPZI trades the same thing.
We're talking abut potential and growth...
...based upon what their factory is certified for.
I don't think any serious investor/long is all that concerned with their revenue having those huge numbers for the last few years. All I want to see is nice growth.
ie If they did 2 million in revenue for 2006, and 3.5 for 2007, I will be very excited. If it's $7 million for both years combined, I will be ecstatic.
Now assuming a number between 5 and 15 million in revenue for AERO financials combined for 2006 + 2007 as a ballpark figure, when we look at the $10 million tax credit they received from the FCCN shell, then it all starts to add up.
NIPI activity for FCCN/AERO has dropped...
Over the weekend and up to just about an hour ago, my NIPI analysis for FCCN/AERO was going parabolic. Parabolic NIPI activity followed by a sharp decline thereto, may indicate the PPS is ready to rise.
The ASK just went up to .0175
For those who have not heard of NIPI analysis, please be advised that I created a new board this weekend, the NIPI board.
NIPI is a new form of technical analysis.
NIPI = Negative Ihub Posting Index
Please stop by and tell me what you think. And make sure to check out the NIPI girl/official spokewoman:
http://investorshub.advfn.com/boards/board.asp?board_id=10794
Once again, excellent DD.
I was just focussed on the 40000/ month muffler production capacity. I didn't realize how much of an asset the ISO was.
Thank you for correcting me. Nice post.
Excellent DD. Nice post.
"It's an industry standard to qualify for those (HUGE) contracts!!! this is only my opinion and I'm not even sure on facts but worth looking in to.
NEWS-ValueRich Financial Expo Sold Out.
"ValueRich Small-Cap Financial Expo New York 2007 - ValueRich, Inc. announced today that the last company presentation slot has been filled for the ValueRich Small-cap Financial Expo, New York, October 18, 2007. Pre-registrations for attendance are well ahead of the previous successful New York event held at the W, June 21 2007."
http://www.pr-inside.com/new-york-valuerich-small-cap-financial-expo-r242805.htm
focus on 40K mufflers/month
stay on point, people. dont be distracted. the board gets diluted fast. no need to defend every single thing.
load up on what really matters.
not the ISO, but the fact that we can produce up to 40,000 mufflers a month and we are expanding. real proucts, real business.
we dont sell real estate on Pluto. we sell buttkicking, street staining, hottie attracting stainless steel AERO EXHAUST, the most bad azz performance muffler on the market
which, by the way-
- increases MPG and pays for itself
- has a lifetime warranty
Im SOO glad we're "AERO" now...
No more holding company/public shell and all that entailed.
FCCN is over, long live AERO EXHAUST!