This company does not have to be in violation EDIT:
of SEC rules to be a terrible investment.
This is a terrible investment. This company has been promising IBT plans to manufacture and sell light weight building panels used in construction all over the world. for over 2 years. Nothing, zip, nada, bupkus. Not a single panel has been built. Contracts have been announced and defaulted. None of that is a SEC problem as long as they don't lie in their Ks and Qs. And there is where you find out how the company is doing.
The Q and K show massive dilution. Pulling out a calculator shows that 80% of the daily trading volume comes from the company issuing shares to pay its interest load. Now if you want to call that accumulation, that is your priviledge. But it is distribution on a massive scale with the float increasing by 100% in just the first 4 months of this year alone.
You mentioned that you didn't think the CEO was getting paid that much.
Think again. From the 10K:
During the fiscal year ended December 31, 2008, Mr. Kenneth Yeung received cash salary of $180,000 and a car allowance of $6,584 (pursuant to his employment agreement with the Company
EMPLOYMENT CONTRACTS
On May 21, 2007, the Company entered into a three year Employment Agreement with Kenneth Yeung, its President and Chief Executive Officer. The Employment Agreement was effective as of May 1, 2007, and expires on April 30, 2010, unless earlier terminated as provided in the Employment Agreement. The Employment Agreement provides for the following base compensation of Mr. Yeung:
May -December 2007 $12,500 per month
January-December 2008 $15,000 per month
January-December 2009 $17,500 per month
January-April 2010 $20,000 per month
This operation is reaching the end of the proverbial rope. The debt load, secured by floorless convertibles, is unsustainable. The part time CEO is getting paid like this was a money machine. They have not been able to accomplish a single one of their announced projects. There are more than 10 more convertible notes coming due in the remaining quarters of this year. With no income, the only way they can be dealt with is more massive dilution just like the dilution the CEO used to deal with the ones that came due in the first quarter.
I know it hurts to hear another outlook on an investment, but it is time for you to stop looking at the trees and see the forest. This is just dead money.
EDIT: Did you know the company does not have a listed telephone number? Did you know that the corporate office is desk space rented at the CEO's brother's office?
