Having bought again yesterday at .31, I was able to bring my basis down to .91. These are my ideas, jmho:
a) I do not believe the co is or ever was, a scam;
b) After alot of dot connecting and crunching facts (and Not trying to alienate others here), I believe all of the current problems go back to mgmt BEFORE KD, AH and LS (In a CC, one caller from "Rebellion" asked Cole about if prev. CEO left because of tarnished rep. Cole never answered the question and bingo, next caller.)
c) In a CC, Lee Cole was asked about the cash/investments and subtly brushed the question aside, with something like, "Don't worry, it's there."
d) I think that what happened is that prev. mgmt.(Bentley/Cole/Boyne) was using EGMI's cash as an ATM to help fund (put it at First London's disposal via "Asset Mgmt") a myrid lot of their cronies' startups, with probably handshakes & back slapping to the effect of, "Once we cleanup, we'll pay you back.";
e) Believe last CFO uncovered this and bailed, but whispered in LS, KD and AH's ears before doing so;
f) As new coCEO, KD behind eight ball but has enough b*lls to not go down without a fight. Because Cole has history of tight lips and tons of well placed cronies to cover him, AH starts dumping just to get out;
g) After months of being stonewalled and then halt, KD brings in Anderson PRIMARILY for legal backing to help him right the ship and not have to take the fall for Cole & co, shenanigans. Cole & co meanwhile now hustling to put cash back together for auditors to find:
h) Don't know if original cash is still there, but believe some will be "found" cuz if Cole goes down, all of the various "good ol' boys" will be sucked into the wormhole with him;
i) Anderson would not come in if they didn't believe they couldn't clean up this mess, get co. back on course and restart making $$$ for all (including shareholders), so what now happens? 1. New BOD of CPAs, JD, qualified marketers (including KD?) 2. Well known, respected PR/IR folks who will spin just enough to attract new money/backers/investors 3. Kickstart some/all various deals in works so co. regains a good rep.
BOTTOM LINE - I'm holding, LONG, cuz love the old movies where good guys do win in the end and ride off into the sunset, happy (with fat wallets).
Don't care if some call me nuts/foolish/BS, whatever. KMA to them...first word is kiss.
