Bottom line:
2007 maintains the NNLX status quo
-Erie still on the drawing board with no hope of any forward momentum there unitl mid 2008 EARLIEST if all goes as "projected".
-OTC move won't be before the end of '07 (very earliest)
-Hydrogen production still very much in the "theoretical" phase
In plain words, check back in a year. Sound familiar? Hasn't this been the standard company PR? Okay, so let's follow the board's reasoning, that this is a new regime and the foundering ship is about to be righted by Bret and Dana, that it's NOT the same, that this time, it'll be different.
Firstly, let's do some math: both Dana and Bret are paid to the tune of $100,000 per year. "250,000 shares of restricted (non-trading) stock per quarter" at .10 a share. If other NNLX employees are paid out in shares, it's getting pretty clear why the trading volumes have been high and the price has remained low.
Secondly, the PR certainly goes the extra yard to create the impression that Bret and Dana are fully backing NNLX through their ownership of shares; "In addition, Mr. Barnhizer and Mr. Allen wish to announce that they have and continue to hold shares purchased on the open market over time...."
There is NOTHING said about any tight holding of the 2 million shares that gentlemen will receive annually as compensation for their NNLX duties. Nor is there any mention of a restriction period before the stock can be sold....$100,000 salaries to protect their investments, hire a CPA and halve the complete flensing that shareholders have been subjected to under the Pink banner....nice work if you can get it.
Thirdly, the PR strives to do in sentiment what a simple number would achive, mainly to ease our concerns about dilution: "This reduction in stock compensation was the first action by the CEO and the Board of Directors taken upon the change in Company management in March --- an action taken in the interest of reducing dilution of shareholder equity. Our goal is to reduce stock compensation by an additional 50% this year."
Tough sounding talk, but what is the current O/S? When and by how much has it increased in the past 2 years? Which of you insiders has sold shares and how many have you sold?
About the only bona-fide silver lining here is the possibility of a grant from Uncle Sam.....a far cry from consistent revenue and the promise of large scale hydrogen production.
This story changes little as the share count grows and grows.
