Capstone Companies Inc (CAPC)

[Salve Lucrum]

Townie, In answer to your request:

would you mind being a little bit more explicit as to what questionable management decisions your talking about in your quote below. I and probaly other shareholders would be very interested in seeing them.

The following are just a few examples, off the cuff, as to questionable management decisions. Yes, some are ancient history but they are all part of an ongoing "history". Obviously, I am expressing opinions here which are open to interpretation and debate.

So here's a short list:

1) The tiles debacle
2) Chinese generators without URL approval
3) Souvenir Direct - mildly profitable but sold back to its original owner for pennies.
4) CPS - In and out with legal problems involved.
5) Overpaying for a little flashlight company called Capstone.
6) An apparent total and continuing ignoring of the published "Code of Ethics"
7) Use of company assets and personnel by management to establish competing business ventures
8) The race car project advertising "vapor" STP tools
9) The decision to market drills and screwdrivers into fierce competition instead of STP branding tailgate products to the obvious NASCAR crowd.customer base.
(Was this deliberate sabotage of a brand to keep it from talking away from the little flashlight company?)
!0) Blaming the failure to properly market the STP line on the excuse that it was related to problems in the "Automotive Industry"
11)The embarrassing loss of claimed "Energy Star" status dur to the recognized inefficiency of induction charging on "Eco" products
12) The infamous "B-2 Stealth Attack" refered to elsewhere.
13) The failure to develop or capitalize on "Leash Lights".
14) The mysterious, activities involving the apparent conversion of the asset known as "Black Box Innovations" complete with its chief operating personnel, to a newly formed company by Wallach,.
15) The failure to maintain listing on the NASDAQ through the loss of all market makers.
16 )Inability to maintain a balance sheet that is not "upside down" after so many years of operation.
17) Failure to maintain a Boared of Directors" with the number of directors called for in the Articles of Incorporation, and particularly without those "independent" directors.
18 Bloated compensation not commensurate with the performance of the executive
19) "Sweetheart Loans"of up to 18% interest for executives, their families and friends. These secured loans are/were a time when the average shareholder was lucky to get 1% on his money market accout..
20) The failure to provide a smooth transition between a non-inventory and inventory operation with obviously flawwed delivery scheduling (blamed on others).

As i said, this list can be expanded if you so desire.