Letter from the CEO- CEO J. Michael Head
February 20th, 2010
Letter to Our Shareholders
From CEO J. Michael Head
As 2010 kicks off, I would like to address our shareholders regarding the state of our business. I will begin by giving a status report for 2009 and then report on the prospects for 2010. I would like to conclude with my thoughts on our stock price and its recent volatility.
2009 was a difficult year for virtually all business segments and this recession is as harsh as any I have witnessed during my 34 years in the business. The transportation industry is always the first to suffer during tough economic times; but it is always the first to bounce back. Our segment of the transportation market focuses on outsourcing, cost reduction, and value added services and can continue to grow, albeit from a lower base. Most industry players experienced a top line decrease of around 40%. The last time our industry experienced a similar downturn (none have been of this magnitude), numerous companies consolidated into industry-wide roll-ups through mergers and acquisitions. We have already seen an increase in activity in this arena. Building strong alliances and partners is critical for successfully positioning our company for the future. MFW has been fortunate to have some of the industry’s best among its customers. Public companies like Landstar, Matson, Ozburn Hessey, and UTI Worldwide use our service to compliment their own very robust platforms while over 100 smaller players look to us for some or all of their technology and support service needs. While I believe that no one knows where we stand on the road to recovery from this recession, we see our customers gearing up to offer more services on a more aggressive basis. This bodes well for our model. When the market does recover, built-in growth will be significant for those that are there to prosper.
2010 began with MFW taking control of Anything Brands Online. ABOL is in the final phases of spinning off the AGO (Anything Green Online) as well as its online division. The AGO announcement of Mike Broll to lead the company is absolutely proof positive of AGO’s commitment to success. Mr. Broll is one of the greatest leaders in the food industry. Announcements regarding the dividend/distribution will be forthcoming from the ABOL Board of Directors in the very near term. This will leave MFW as the sole entity of ANYT and allow us to focus on our core business. ABOL and MFW believe this is the best way to create shareholder value in the near term and provide the platforms for tremendous long term value potential.
2010 began with the acquisition of a major new customer. Our alliance with Freight Management Inc. will not only fuel the growth of our managed revenue but will also involve us in their exciting plans for the year. We expect you will be hearing much from us about this alliance during the year. We are devoting a great deal of time and effort to expanding our systems and programs in order to benefit each of our customers. One unique aspect of our business model is that our customers can do what they do best and we can do the rest.
We will continue our periodic investor conference calls and will be announcing a date for the next one in the near future. Be sure and post any questions you might have so they can be addressed at the meeting for the benefit of all to hear.
Finally, I think it is important that I speak to the volatility of our stock price. I must first confess that I am not the most qualified person to offer advice on the “Pink” market. I have been involved in starting two different public companies that did IPO’s and were listed on NASDAQ. I have spent the last several weeks talking to consultants and experts that seem to understand this market. I feel comfortable that as long as we continue down the path that we are on, establishing credibility in the marketplace and taking care of the business, that the stock price will stabilize at the proper level. Here are some “lessons” that the experts have handed down to me:
Lesson #1: The Pink-Sheets are the “Wild West” of stock markets. Short sellers love to put pressure on thinly traded stock. Not only can you overcome them, but they can be a positive factor when the momentum turns.
Lesson #2: The Pink entry market is full of short-term traders who come and go in your stock based on their own trading parameters. They should be considered an important part of our shareholder base and will help us appreciate the stock. Only companies with a very short-term mentality worry about those who get in and out for quick profits.
Lesson #3: There is, and will always be 3rd party promoters in the “Pinks”. Some promoters are honest and others aren’t. They are capable of adding to a company’s shareholder base but more often than not, the results have very little lasting value.
Lesson #4: The “Pinks” don’t always react like the NASDAQ when it comes to releasing honest news and following it up with real communication. There is way too much skepticism in the pink-sheet market to expect news, no matter how significant, to always appreciate your stock, but if you continue to do what you say you are going to do and report frequently, but not superficially, your stock will react accordingly.
Final and Most Important Lesson of All: To help the company and its shareholders, make the common sense moves that build and sustain credibility.
Therefore, I believe it is time to take those next steps to continue building on the credibility we at MFW have worked so hard to achieve. Programs such as the following are either in place or will be announced upon completion:
1. We are completing and ensuring that all spin-offs of Anything Brands business units are separated from MFW prior to end of 1st Quarter, 2010.
2. We will soon name the Auditing Firm we intend to engage to provide audited financial statements to become Fully-Reporting and Audited
3. We have applied for a name and symbol change that will more closely reflect our business.
4. We are working with consultants to ensure we provide our shareholders with the most cost effective, credible reporting status and meet all the requirements to move our company to the OTCBB.
5. We will continue to post news that is accurate, verifiable, and true.
6. I will continue to answer all Investor Questions in an honest and timely fashion
In closing, MFW will continue building shareholder base and value through hard work and integrity. I personally share each of our shareholders concerns for day to day price swings and un-explained volatility. I have and will strive to do all I can to continue building the credibility that is somewhat difficult, but not impossible, to achieve in a less regulated environment. Our strategies to spin–out our separate business units, become a fully reporting company, and move from the pinks should help us solidify the credibility and sustainability we are seeking. The steps we are taking are in fact, a series of great common sense moves that any company in this market must do to prove they are what they say they are. The most encouraging thing for me throughout this process has been that nearly every potential shareholder that has visited me at MFW has become a shareholder. I take their trust in me and in our vision very personally and will always work for the benefit of our shareholders. One of the best things I can do, much like a coach in sports, is to make sure our team keeps winning games and getting better; communicate our successes, and occasionally, our failures. Our strategy was put in place less than 60 days ago and has not yet had the time to mature. It is a work in progress that I am proud to be a part of. I am absolutely committed to the success of this company and its shareholders.
I urge you all to stay tuned and stay connected
