Marani Brands Inc. (MRIB)

[Matthew Berg]

I'm a little shocked at the optimism given those financials. There are so many red flags. First and foremost is that it looks to me as thigh almost a quarter of shares outstanding we're issued for free supporting the zero cost theories. They basically gave away 120 million shares to pay some relatively minor debts. Second is by accounting standards the company is obviously insolvent. Third are some ticky tack but real issues. How is a company with $540 in computer equipment doing all they say they're doing? It just doesn't add up. And I've said this before... Inventory and launch are big issues. They don't have any inventory but they say they've sold $115 million in vodka? There's also one huge red flag that people may have missed and I mentioned this a month ago and it proved true. Unpaid payroll taxes. This is a biggie, especially in California. You don't pay those and you are shut down in a New York minute. This company looks horrendous on paper and most likely is in reality. It's a train wreck praying for a miracle of some sorts or just trying to suck as much out of it before it tanks. Thinking back to the zero cost basis groups I'd think the latter is the course being taken. Probably just a matter of time and looking at the cash position and the rest of the balance sheet I'd say a BK before the end of the year is imminent or perhaps they'll just go silent again like they did in 2009.