Seven Arts Entertainment Inc (SAPX)

[ICEVRE3]

Agree. This company is a joke. Look over my past posts and see I invested awhile ago based on technicals, which meant nothing due to the overwhelming insolvency and mismanagement. Did not do my proper DD and suffered a small loss.

The company is worth squat due to massive loans from 3rd parties being paid in shares which are then pumped and sold (just look @ the chart.) There is almost no way to play this to the upside.

These loans paid for the new LA property, and lifestyle/living expenses of management I can only assume. The money is not being used to generate revenue, only increase the value of the CEO's seemingly personal assets. (I say this because he doesn't follow GAAP- Entity Assumption in any way. He acts as though the assets are HIS with complete control, and an annual salary almost worth more than the market cap itself.)

The whole concept of this business is not making movies or music: it's to borrow money from friends to purchase stuff- and pay off debt by issuing worthless shares of the company's stock which are then pumped and sold.

The whole operation only works for 2 parties- The company, and the creditor. Oh, and maybe the people intelligent enough to see what's happening here and short the stock. (all that "naked shorting?") People must have been lining up out the doors to short this POS.

Anyway, just a friendly reminder about my experience with the company, and why you should do 5 min of DD to see what is truly going on here. This is not an Entertainment company, it's a money transfer operation (from creditors to PH):(from Common shareholders to Creditors).