Another long post from DK76.
I may be really slow, but I'm still analyzing the whole situation with SEVU, McBride, FG, etc. Some things are obvious. The 10Q reflects a number of issues that don't appear favorable to shareholders. I'd like some factual details, as would everyone here, but I don't believe this is the most reliable source of information, and so far this has been the only place I've seen anything on the subject. As I have stated so many times, the stock price has already endured the freefall, so there is minimal remaining downside. I haven't seen enough to motivate me to sell yet.
The actions of SEVU aren't the only ones I find questionable. The overnight 180 on the part of FG is extremely suspect. We all know FG has been in close contact with Rich for at least the past 18 months, and possibly much longer. That has been verified by both parties. FG is obviously much more than a "casual observer" when it comes to SEVU and McBride's actions, so I find it hard to believe the recent 10Q was a major revelation to him. If anything, he may realize that SEVU and/or McBride are now under even greater scrutiny, and he wants to distance himself from them and do so with great fanfare. If his "case" is so strong, why is he trying to enlist so much support from the rest of us? Is he going to sue SEVU or McBride? If he is truly long SEVU, it would seem as though suing them would be counterproductive. I don't know how successfully anyone could sue Rich in this case, nor do I know the true assets of the company or McBride, but I find FGs attempt (or even willingness) to enlist others very suspect. I think he's afraid of being implicated with Rich or SEVU, so he's trying to make it appear that all is a surprise to him. I'm not buying that one. I also don't believe his "case" is nearly as strong as he claims. If it was, he wouldn't be discussing it publicly or inviting others to join him. Telegraphing your legal plans on a public message board is just plain stupid, and I think FG is smarter than that. Besides, if he were to prevail, he would then have to share any settlement with others. I don't think he's that generous.
Personally, I found it easier to suspect SEVU a year ago when Rich was running the company. I don't care if his failures were the result of lack of expertise, bandwidth, or deceit, it happened during a period when the SEC wasn't watching as closely as they are today and the company didn't have the experienced leadership they have today. People can argue that Rich is still running the company, but Bernardich is still responsible for company actions from a legal standpoint. He also knows the scrutiny the company is enduring today, so while they may be doing things the shareholders don't like, I'm not sure they're illegal.
As much as I enjoy the entertainment value this company provides, it's still about the products. I don't know if the current share price is reflective of true value or not, but I do believe the reason so many here are upset is because the price has been so much higher. It's important to remember that the true value of this company was never even close to five dollars per share, much less twenty-eight. Future potential is obviously a major factor in any investment decision, and we were lead to believe the future was brighter and nearer than it turned out. Maybe we were intentionally misled, maybe we weren't, but in terms of marketable products and qualified management, it seems the company is much better off today than they were a year ago. It's unfortunate that there appear to be many more outstanding shares than one would have expected by now, but if the alternative may have been bankruptcy the products wouldn't have made it to market. Maybe the stock price will one day reach five dollars, rather than the ten it would have been without dilution. Maybe we'll never see anything above fifty cents again. I just think it's wise to consider the bigger picture, rather than focusing on the distractions. If the distractions outweigh the big picture, then it's time to sell our stock and move on. I'm just not ready to sell yet.
Sorry for the long post.
