AppSwarm Inc (SWRM)

[valuemanager]

Sponge -- You are right. The 1:80 split in March 2009 was indeed a reverse split, meaning that 80 shares were combined into one (with 80 times the value). Apologies for my misreading.

I was misled by the long-term chart, which shows a stock price of $130 in 2001. In fact, this high stock price is exactly the result of the reverse merger (the stock never traded at these highs, it's simply recalculated in order to adjust for the massive 1:80 reverse-split).

Nevertheless, the chart demonstrates very clearly that a LOT if shareholder value was burned by HBSY (and preceding companies) "management". Where did this cash go? The filings speak a clear language: Management compensation, stock promoters and (to a much smaller extend) expenses of a running concern. Makes you wonder what the real intention of these string of companies was other than an income machine for "management" (and stock promoters). In any case, payouts to promoters and company executives has been a high multiple of any net profits ever achieved.

What do you think, Sponge? What led you to make your bold investment decision?