Hunsaker's statement about "1 million sales"
[Read the entire post. It's PRO AERO PRO HUNSAKER althugh may not appear so at first glance.]
I don't think that sweeping this under the rug and not having a rational discussion about it will do the PPS any good in the long term. I know it's uncomfortable, but if we can acknowledge it and find a rational explanation for it, we will be doing a necessary job.
If we just let it linger, it will come back and bite this stock in the butt again before all the smoke clears.
Clearly, for me anyway, this was the reason the PPS went South and why I sold shares on Friday. And this was certainly the punch line and reason the law suit documents were strategically posted yesterday.
The claims in the lawsuit made by the Plaintiff don't bother me at all. At first they appear a bit unnerving, but the lawsuit was apparently dismissed and most of the allegations were denied by AERO.
The law suit documents were posted in order to bring attention to Paragraph 21 of the Amended Answer which has a statement by Hunsaker, under Penalty of perjury, confirming that he told the plaintiff/Aero investor that Aero had sales of "1 million" dollars.
The statement was made according to Hunsaker, in Feb 2006. The documents were stamped June 2006. But this was an Amended Complaint so the first one was filed even sooner. Which tells me that this Plaintiff was suing them within weeks of buying shares.
Something isn't right about that. It's a very short window. Perhaps the investor just got scared or needed money and sued to get his investment back in a quick settlement? I don't know, but that seems like a very fast trigger. Sane people don't normally resort to litigation that fast, they try to work things out.
None of the allegations really bother me. Read the complaint yourself and decide, but I don't see anything very problematic.
The Plaintiff decided to invest in the company. The company told him they needed money to increase production, but they used the funds to pay a bill.
Big deal.
It's not like AERO took Plaintiff's money and spent it on prostitutes, whiskey and poker. AERO invested paintiff's money in the company.
The plaintiff also sued because AERO fired one of the creators of the patent. That's none of the shareholder's business. When you invest money, you don't get to run the company.
I don't see much in the complaint which makes me nervous about AERO or its management.
But we do have Hunsaker admitting to having said they had 1 million in sales. And that is the real reason the PPS went down fast.
Since we didn't have the time to fairly analyze this number and statement, many of us had a panic attack. And IMO, that was an anticipated result of the documents being unleashed strategically yesterday.
Having had the time to revisit Hunsaker's statements, I don't think it's necessarily bad. He made the statement in Feb 2006, so he's referring to some period in 2005. AERO has come a long way since 2005 and we know there has been substantial growth.
Remember, this is a company started in a garage. Still, I'm a little nervous about this number. I don't think anybody here would have believed that was all they had in 2005.
We know there's been growth and will know how much growth soon enough after the 8K.
Obviously, AERO is trying to become a big player. One million in sales for 2005 is not big, but it's obvious to me these guys are trying and making moves and they have a great product.
And they had one million in sales of a real product which my DD indicates people are loving. With more time to analyze all of this, I don't think it would have made many of us sell, but when hit with this info on the morning after the merger, and then the sky starts falling.
TEXTBOOK DEFINITION OF A BEAR RAID.
I fell down, I got up, I fell down again. I am still learning this game. But what happened here makes me sick.
The most important thing I draw from Hunsaker's admission in paragraph 21 is that he admitted to having said "1 million in sales." His "ANSWER TO THE COMPLAINT" denies most all of the other allegations, but he admits to having told Plaintiff they had 1 million in sales.
The fact that he admits to that makes me feel better about his character. It tells me that he said it and he wasn't hiding the fact that he said it. Unless the conversation was taped by Plaintiff, this could have been a he said she said thing and Hunsaker could have denied it in the Answer to the law suit, but he didn't deny it.
This tells me the guy is playing fair and true.
