Please take the time to read the following post
Phoenix Associates announced in the past that when they became fully reporting they expected to have 815 million shares or less for which they owned 40% at the time. That is exactly 326 million shares.
In the most current filing with pink sheets which is titled Current adequate information, series 2 has 62,500,000 authorized of which 283,123 is outstanding. Series 3 has 62,500,000 authorized of which 10,369,275 are outstanding.
For management to come up with this amount of preferred three shares they had to come up with approximately 601 million shares. That means they had to give themselves an extra 275 million shares to pull this off. Do you you see any great success story in the stock price to attribute a 275 million share bonus. Let's say the stock was trading at two cents when they did this corporaate action, that is a $5.5 million bonus for the three of them. The sick part is their conversion rate is $.17.
That means 10,369,275 shares at a par value at $10 is equal to 103,692,750 dollars of future net profits out of this company. That is over 103 million future net profits taken from us after giving themselves a 5.5 million dollar bonus.
If anyone wants to understand the calculation all you have to do is take a par value of $10 and divided by $.17 which is approximately 58. Then you take 58 times how many series 3 shares are outstanding which is 10,369,275 and that is how you come up with 601,417,950 shares retired to create this Series 3 preffered.
I spoke I asked Ron the other week to retire them, he said we had every right to do this under Nevada law. I said the Board of Directors has a fiduciary responsibility to act in the best interest of the shareholders. Do you think this was in our best interest? He had no comment. At this point management retired all their common shares and gave themselves a 275 million share bonus. What loyalty do they have to the common shareholder if they don't even have any. With these preffered 3's hanging out their they can rob this company of alll its future net earnings into an almost unforseeable future. Why are we standing for this? We shold all pressure this company into retiring them. Almost all sophisticated investors will avoid this stock like the plague as long as they hang out their. That corporate action alone had a huge negative impact on the stock and will continue to do so in the future. Send letters, emails, phone the company and say enough is enough. This must stop. Retire all the preffered 3 shares and the 275 million shares they stole from us.
