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Friday, June 27, 2014 1:03:43 PM
I have to chuckle a bit when I look at the different DD claims. Maybe I'm tougher on this process coming from an M&A background but pictures of product, copies of press releases, quotes and claims from management, non documented forecast and mysterious unpublished contracts and supposed orders... are not DD. DD is exactly the opposite. It's a matter of ignoring what the company releases or publishes other than legally required financial disclosures and seeking the truth about the viability of the company without subjective influence of the company or its management. Company fundamentals such as balance sheet, income statement, confirmed non-recourse purchase orders, cash flow, SEC filings, management experience and track record, education, past success AND failure. The whole nine yards of OBJECTIVE analysis... that's the meat of due diligence, not fluff pieces released by the company regarding sponsorships, management opinions, pretty pictures and company issued PR and infomercials. All that tells me is the true components for god DD on MRIB are extremely weak and so far that's exactly what I've seen which brings me to my next point with two major questions.
One question is general and one is technical. Let's flash back five years. Looking at what little financials we have this company looks a lot like it did in 2009-2010 when it went belly up. You have the same executive management, same corporate structure, same business plan for the most part and not much different. They're approaching payables around the same as they're final published quarterlies in Q1 2010. Sales are roughly the same and loss is roughly the same, actually a little bit more this time around. Cash resources are considerably less now and human resources, inventory and assets are about the same. What's different this time? It seems almost identical to me which makes me think it will end the same way and relatively soon. It's a sea of red ink and having read the lawsuit I guarantee they're going to lose or have to settle with Bodie. The next question I have is one of curiosity and it makes me question the honesty of reporting from what is the exact same people as five years ago. We've already seen "mistakes" on the financials which to me is a red flag but I find one extremely disturbing (and this is a good example of why DD must employ financial statements). Look at their next to last filing in Q4 2009. Almost $5M in profit. Yes. And it's very odd that it appears to be some form of recovery or something I don't get because it's a credit on selling and admin. That's very fishy. What's even more fishy is that $5M net, net, net disappears in their next and final statement before the shut the doors. Payables did not change but accumulated and there were no write offs. No notes to the financials. But the $5M was apparently gone. Furthermore, the income report and balance sheets from the Q4 2009 filing don't even match. I'm just trying to figure out if they had a really bad bookkeeper or $5M did disappear. Their books and reporting are so shoddy and questionable I just can't see much of it as dependable and their failure to be more communicative in this respect is a HUGE red flag. Anyway, that's DD, not fancy pictures. Finding out the real story requires one to get over the promotional material and dig down into the truth through real numbers. Would also love for someone to explain the 2009-2010 accounting and if they can fins out where that $5M went before the doors were abruptly shut in Q1 2010. My personal opinion is there is not one honest intention in this company operation and it is a typical reverse merger stock play for profit of the zero cost basis principals. It should not be a public company and it is not behaving like one.
BTW, the sales Magrit claims based on her own $136 per case price means that they sold (and I DOUBT its been paid for)would not be enough to cover company operations to date just based on salaries, payroll taxes and WC. Unless another container arrives next week and is fully sold out by mid July, they're broke unless they're raising money some other way which I fear is the case. This is not to mention they will have to go almost another $100k into their pocket for another shipment. The numbers just don't add up folks. Magrit talks a good game but my feeling is that very little of it could be substantiated if put to the test. I'm sure you would find things like recourse purchase order being considered paid for sales and again what I fear, private placements and other non-documented raises. There is simply not enough revenue to support the company claims.
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