TheDirectory.com Inc (SEEK)

[Carini]

Were some of those "drastic steps" the subject of the letter SEEK's former accountants wrote to the SEC?

"You never put out a PR that sets a bad tone for the company."

Yes but it was the utter lack of communication that set the worst tone of all. It's SG's standard operating procedure. Announce something, often with a specific date, and then the date comes and goes and it is never spoken of again. I think Scott (and most of these pink sheets) underestimate the value of transparency, and don't realize that sometimes a PR honestly announcing "bad" news and offering some explanation might actually be better for the company than not saying anything at all.

But again, on September 29, 2014, SEEK

announced that it will be launching its first ever satellite radio media campaign on SiriusXM satellite radio. The campaign is scheduled to begin on Monday, October 13th, 2014.

Company Founder and CEO Scott Gallagher stated, "We've been planning a national ad campaign on SiriusXM satellite radio for some time now...

Yet October 14 came and went, and nothing was ever said about the radio ad campaign again.

My question is, after "planning a national ad campaign on SiriusXM satellite radio for some time"(and teasing it in PR's for a year or so), what could possibly have changed in the 2 weeks between that PR and the scheduled launch date that suddenly caused SG to pull the plug on the ads?

And, given that over 400 million shares traded between 9/29 and 10/14, and that a large number of those buyers surely bought into SEEK in reliance upon SG's statement that the company would begin airing advertisements on Sirius radio on October 14th, did SG not think it was a material event that shareholders should have been informed of when the plans changed?

That is just one of the numerous examples of SG not just failing to give full disclosure, but of, IMO, intentionally and knowingly making misrepresentations to the public under the guise of "forward-looking statements" that were designed to increase volume so that SEEK's debt holders could unload all the shares that Scott was giving to them at a discount, knowing what it would do to people's investments.