Very shrewd of DM with this move. Ihave seen this first hand in a company I was working for years ago. He exchanged debt for nothing (stock in something that has no value) butit is not for nothing.
In the instance I witnessed first hand the strtegic move was done to make the principal company; in this case EVFL, stronger and in position to capitalize on events about to unfold.
I seem to remember that EVFL got back a majority interest in PNG awhile back (I could be mistaken, memory is not what it used to be). Seemed at the time to be a pointless asset. Now the light is coming on; PNG is a write off; being utilized obviously to allow EVFL to get rid of its debt, not a bad idea if you think about it. The company is going down why not let it take EVFL debt with it? The shares of stock we got in exchange means nothing to EVFL or us as shareholders. It's small and will serve as a write off for EVFL and a small one at that so no real impact on us. The big impact for us is that we got rid of more debt.
It's unclear to me the details of the 536g's of debt we got rid of but in the long run; I don't think it will amount to much but again DM has gotten rid of more debt.
All in all some good moves which should allow EVFL to further strengyhen it's books and position us to move forward with what is stacking up to be a sound business plan for expotntial growth and expansion in the very near future, provided DM can continue to move forward and impliment his business plan which I think we will see unfold over time. JMHO but I also think by the end of this year we will see some big pluses and a couple big aspects of this plan come to light allowing the pps to start moving north.
On another note: There is an independent gas station about a mile from my house. They have just recently stopped selling all gas and now only sell desiel. Desiel #2 and two grades of Bio desiel. I find this very interesting for a couple reasons:
Independents margins on gasoline are very small and usually are nonexistent in the low grades of gas. So why would an independent stop selling gas all together and only sell desiel and biodesiel if there was no profit margin and since there is profit in higher grades of unleaded why not keep at least on nozzle as a hedge? Second where is it coing from, we live in San Diego? THird, this independent only has one station what drovethem to bank their entire livelyhood and future so heavely into biodesiel?
I think will have to go have a heart to heart with them, I am curious to know their opinion and reason for such a bold move.
I know this is a long post but not planning on spending my Sunday at the computer just wanted to touch base since I read the post from yesterday.
For those who read my post; yesterday the wife and I went to our marina for Harbor Days. It was a blast. I admit I got caught up and started dreaming alittle. Next year I told her we wuld be sitting on the back of our big boat taking in Harbor Days.
