we may all believe the company is real , but I do not believe the books are. I will bet that the audited financials are not even close to what they claim, especially as far as book value goes. I am not going to argue the point with anyone, since I do not have the time or the energy to teach accounting 101 and 102. But trust me, that shareholder equity number that they are waving around will be nowhere close to what they will sign off on under sarb/ox on the 10-k, if they ever do so. It's really just common sense when you realize that the equation just doesnt add up. Bookvalue/shareholder equity is built 1 of 2 ways. either through earnings, or buying assets. We know they havent earned 80 million. and we know there was only 2.5 million of preferred shares @ $10 to use for acquisitions. Now, if they did buy 80 million in assets (over and above the acquisition costs,) ie. a company (or a group of companies) with 105 million of book value for $25 million of preferreds, (or some combination of prefs and common or cash) then the question for the auditors is "Are the assets really worth 105 million?" The answer is it is not. What PBLS management did in the annoucement that had the unaudited financials fpr 2005 is simple, yet innacurate. They merely added up the 2005 financials of the companies they bought as they were before they bought them. The actual book value of what they bought is what they paid for it. That book value will never show up on their audited financials, and based on how they made that announcement, they do not have to . The disclaimer they placed before those unaudited financials made that OK.
