Expo Holdings Inc. (EXPH)

[Santa Barbara Broker]

I like EXPO and I like their products..I also like the fact that the management is growing their company in this economy..That they are providing jobs in this economy and are about to bring on a new CEO to run the business.

How much intimate contact with store displays does one have in order to like or dislike them? They're a commodity like a brick or a pencil. Objects which need to command only two remarkably simple value sets...bare functionality and price. Expo doesn't need to make a profit so for most clients they can satisfy both..."like" doesn't even enter into to it with the displays and is totally irrelevent since they aren't for sale on a retail level. The actual pictures provided of Expo's cabinetry show them to be flat out ugly. It has little to do with taste...they are horrid, gaudy and cheap in appearance. They have canned photos on their website of custom installations but I would guess that the cabinets in those photos were neither produced or installed by Expo if the actual photos of their products are any indication.

The management of Expo isn't growing the company...they are shrinking it's net worth almost as fast as they are destroying the shareholder's equity. Once again, this isn't open to interpretation. Their financials tell anyone who can read a balance sheet the same thing.

IBM supplies jobs. KMart supplies jobs. Three card monty dealers supply jobs. Drug dealers supply jobs. All are real jobs but their benefit to the GNP and society in general vary wildly. Expo, IMHO, supplies jobs mainly to provide a stable front for their G&A expensing scam. The company isn't set up to be profitable if you look strictly at it's history and past financials. It would seem to be set up solely as a device to channel shareholder equity into the control of the principals running it. Net/net those type jobs cost the US economy a tremendous amount more in the long run than any short term benefits they might supply.

The "new CEO" will be controlled completely by JD Brown as long as Brown is employed by the company. Period. Anyone who believes differently is completely out of touch with the reality of this company, why and how it functions. IMHO.

SBB