"Management should have received at the most $.06 for their common shares, that means that almost 2/3 of the class III pref. should be distributed to shareholders and people who lost money."
Ummm...I often have trouble with addition and English, but where are you from? This is America, not a land of equal opportunity. Greed is king of corporate America and politics, even the boy that claims he invented the Internet and that the earth is melting has one of the largest electric and utility bills in the country at their personal residence. And as much as communism seems to work out in theory, in practice it seems to have failed quite miserably...
"The financial statements show a $30 mill. asset from the pit, even thought they don't own it. That is contrary to accounting rules, you can only use your cost as an asset, not 10% of future hoped for sales."
Ummm...I often have trouble with addition and English, but specifically where do you see this in the financials? I see $47.55M in mineral reserves and nothing that even amounts to $30M...how do you know that isn't their cost to mine the value of what they believe is in the pit? Oh, that's right, we don't know. But it seems their SEC attorney felt the numbers were satisfactory.
"If you deduct income tax and preferred dividends, there is no profit for common shareholders."
Ummm...I often have trouble with addition and English, but specifically how do you come up with such a statement? If the $100M+ Preferred 3's are owned by the Big 3 (Paul, Ron, and Carolyn), they can easily elect to not pay themselves a dividend if they so choose. We don't even know if the Preferred 3's pay a dividend. That leaves approx. $10M in Preferreds. Some of those were used for acquisitions and we know that for a fact from court docs. Even if all of these $10M in preferred paid a 6% dividend annually, that would be approx. $600k a year. Even after they paid taxes (if they in fact owed any as they could have capital loss carry forwards) this company could still be in the green.
There is plenty here to be upset about, like the fact that it appears that the Bayou Boys gave themselves a $100M bonus with the preferred 3's that you pointed out. Sadly, they don't need our permission to do that. However, if you are going to file a lawsuit, please at least have your facts straight before you waste $200 an hour seeking legal advice. Of course, you can find a law firm on the back of your phone book that will work for you for free...mine says that they are "For the People." Working for free in America...right...
"Experience: that most brutal of teachers. But you learn, my God do you learn." C.S. Lewis
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