Here is what I'm requesting of management.
I have already told Ron Blackburn, as well as John Hayden the following information. This company put out in a press release that there would be 815 million shares are less when they publicly reported outstanding share count, and that management owned 40% of the shares. That means management owned at that time 326 million common shares. Personally I feel that the preferred three deal that they did for themselves is a sin to shareholders. They conveniently use the excuse they did this to protect themselves from a hostile takeover. I personally think the answer was bull. I think it was clearly gread on their part and nothing more. Now that we know that there is no way there is any hostile attempt being taken I asked that management retire their preferred 3 shares back to the treasury. Understand this as well, they retired 600 million shares for this preferred three class. That means they gave themselves 274 million shares as some kind of bonus. Management clearly breached their fiduciary responsibility in regards to this action. Not only was the preferred three deal unjust, but giving themselves an extra 274 million shares is outrageous. No bonuses should ever be given, unless the shareholders somehow benefited, which is almost usually a strong appreciation of stock price. This is clearly unjust enrichment. The SEC in this situation will not get involved in a breach of fiduciary responsibility. But since they are registered in the state of Nevada. We could hire a Nevade licensed lawyer to fight them on this matter and I personally think easily win a victory on having them retire 274 million shares back to the treasury as well as take their preferred three shares back to common. This preferred three share class was a dagger in the heart of this stock. No sophisticated investor would ever invest in a company where management did not own common shares and were potentially going to rob the future net earnings from the common shareholder for many years to come. What invested interest do they have in ever seeing the stock go up. They don't even own shares. They can be potentially put back in common shares if they so choose to. We as shareholders should demand that the actions that I've stated above be taken, or they will see us in court.
Again as long as those preferred three shares exist out there,
it will always have a very strong damper on this stock. The company can just rob the future net earnings to the tune of 102 million. That is 600 million shares times 17 cents. If I am wrong with my calculation anyone please point it out? Idon't think I am. And I repeat those preferred three shares will always have a severe damper on any future stock appreciation. We were willing to accept these, because the company was working on huge things such as the $6.6 billion contract, which at that point would not have mattered. It sure as hell matters now. I hope I explained myself clearly.
We should not stand for this.
