Cytotekk: It ain't MY stock...
I sold it four years ago, at 14 bucks and change (or 85% ago). The name of it is WAVX and it is, in my humble opinion, the premier cult stock on NASDAQ. (Premier in terms of it cult-ness, that is.)
The cult members deny that it is one, of course. Don't they always? But what else do you call a community that:
A. Wants to lead the way in "security" on the internet, yet whose leader participates in the attempted publication of the identities of dissidents such as myself. Snackman did this, quite openly, on the WAVXDD board. Ask him. He won't even deny it. Don't mention the irony of it to him, because he will think you are a pointy-headed intellectual, call you a liar, try and have you banned from IHUB, and possibly organize a torches-and-pitchforks party in front of your house.
B. Thinks promotion by lineage is a good idea. The present CEO being the eldest son of the founding CEO. His entire resume prior to working for this company was working for a water company--also family owned.
C. Forgives such behavior as, for example, the CEO defending a $21 million revenue projection in the seventh month of a year in which the company fell more than $20 million short of it. A miss that obviously would have resulted in the dismissal of any other CEO on NASDAQ.
D. Looks the other way while management blows EIGHTY MILLION DOLLARS on selling and g&a expenses (I'm not counting R&D here) during a 3 year period in which the company generated $1.4 million in revenue.
E. Looks the other way when management spends $7 million to acquire, of all things, an internet portal (Isophere.com) to obtain--according to their explanation--their precious human resources. This acquisition coming in the middle of a sector meltdown that would have enabled the same staff to be had for the price of a couple want ads.
F. Looks the other way when management spends a quarter million on a contract with one David Booth--a gentleman who is said to line his hat with tin foil (for the usual reasons).
G. Looks the other way when management pays itself more in cash compensation over that three year time period, 2000-2002, than the company books in revenues.
H. Looks the other way when the CFO makes two of the ugliest financing deals in the history of corporate finance--all the while drawing down 900K in compensation the same year.
I. Expresses the opinion--and I'm not kidding, this has come from several of the respected Wavoids--that they are actually happy the CEO was not honest with them, that if he had been, they'd have exited the stock and would not now be in the fantastic situation they are in (the cusp of unimaginable riches, that is).
J. Maintains a back-door e-mail list to share "inside" information (which as far as I know is not specific enough to run afoul of securities law). Mainly winks, nods, high-signs from folks in the know.
I could go on, but you get the picture. This is a cult stock. Period.
AI
