Expo Holdings Inc. (EXPH)

[Santa Barbara Broker]

Expo IS a scam....in my opinion of course. It just depends on what definition of "scam" fits best into what level of reality...or denial thereof one views the company and it's management from. Expo builds and sells cabinetry and displays in a building on Shaver Street in North Wilksboro, NC. Conducting business much like they likely did for most of D&D Displays's existent, they build and sell cabinetry and displays at a LOSS. The difference now being that they have converted D&D Displays into a scam called Expo Holdings by taking it public and using the cash obtained from the sale of their shareholder's equity in the form of shares to PIPE funders and the like to make up for the losses they used to have to pay out of pocket. Now they can continue to operate Expo Holdings, Inc. the same way they operated D&D Displays...at horrendous losses (at least if 2005 was any example)...and they have no personal liability! Better yet, they could take out an insane LOC at what amounted to a 30% annual interest rate ($400K @ $120K per year interest) give themselves a $400K "shareholder advance" out of it to make up for the $350K they lost the year before in D&D and have the shareholders not only pay their perks and salaries but the ourageous interest and principal on the LOC as well! And that sort of thing continues to this very day...all of it, the losses, share sales, the "rental" deals and "advances". Now THAT is what some people call "legitimate". THAT is what I call a "scam". Just all depends on the level of reality one is looking at things from, doesn't it? All IMHO.

SBB