WHAI... I bought some of this not too long ago but then sold after I did more DD. (I know I should have done the DD first but as luck would have it, I made a few bucks).
The company has grown exponentially through acquisitions. Sales in 03 were $4mil, in 04 they were $40 mil, and in 05 they now project $200 mil. The company broke even in 03, they lost $25 Mil in 04 (65c/share) and they project to earn 50c in 05. The CEO is only 32 and has no experience in running a company of this size. He is a great promoter but I question whether he will be able to execute. I think some of that inexperience may have showed in the latest quarter when they revised their earnings the day after they were announced.
The negative tangible bookvalue is also a concern but so is their liquidity. Per the last 10Q, current liabilities exceeded current assets by a substantial margin. ($41mil vs $29 mil).
As for that rosy analysis by Dutton and associates, the company is paying for it and paying well. It appears that they just renewed their subscription for $55,000 and that was cash up front.
If mgmt can produce the numbers they are projecting then stockholders have little to worry about. However, I believe they need to show more results before I would jump on this bandwagon.
