DALLAS (Jan. 30, 2007) – What started out as an normal interview regarding the status of his company turned into something quite different after a shareholder asked Produce Safety and Security International CEO Bill Karney a question - about the status of the company.
After telling Market News First show host Saul Albom about the latest lease on a warehouse in Dallas suburb Garland, Texas, and then giving an overview of the company’s ozone processes that remove contaminants from food and extends the shelf life of perishables. It can also, the company said, sanitize and disinfect against food-borne illnesses and disease-causing bacteria.
But then came a call from a shareholder who identified himself as Tony from Columbus, Ohio. Tony asked about PDSC’s share structure and for a timeframe for a formal release or news on revenues and audited financials.
A visibly agitated Karney responded. “Ya’ll have been posted on this for I don’t know how many times that I’ve been on this show and it’s been coming in press releases,” he said. “Why don’t you just let the deal take its place, we have people in place. Right now really, we are a pink sheet company. We are not a reporting company. We are working in to that situation.”
“And until you people start getting off our back, and with all of the crap that you throw out there, and through these chat rooms and everything else, let’s face reality. Let’s face what a real company is about,” Karney acerbically continued. “When you see the revenues, you’re gonna be happy. If you’re not gonna be happy, my suggestion is to sell your stock.”
“I don’t think there’s any more I’ve gotta go over with you,” he said. “I’ve been through this time and time again.”
“I’m just an investor,” Tony retorted. “I don’t feel that you should have such animosity towards us. We just want to know if you have any dates, do you have any plans of filing? It’s just a question. Don’t get so defensive – it makes us wonder.”
Karney adamantly said that the information about that timeline was in press releases and in the “four different interviews that I’ve done in this station.”
“What part of no don’t you people understand?” Karney said. “Until the audit is filed by the SEC auditors, of which one of them is here in Dallas, Texas, with me right now, when are you going to back off and let somebody run the company?”
Albom brought up the precipitous fall in share prices over the last 52 weeks – falling from a high of .15 to a flatline of .001.
“I’m an operations man,” Karney said. “I’m not a financials man, I’m not a stock person.”
Karney then went on to allude to the company’s current travails, where a court case has tied up a significant amount of shares, and had much vitriol for the company’s current combantant - Stone Financial, calling them “jerks” that were taking advantage of pink sheet companies because they “have Grand Theft Auto in their heart.”
Karney said that he had $3.5 million of his own money invested in the company, and was frustrated that the share price was so low when the company had three warehouses and several contracts ready to fulfill.
But his harshest words were for PDSC shareholders.
“I’m not real happy with these yo-yos that are sittin’ out there poppin’ their .003 or their .002 and sayin, ‘Wow, we are in charge,’” he said. “C’mon baby, let’s face the facts.”
“You have a fiduciary responsibility as CEO,” Albom pointed out. “So they do have a say…”
Karney said that some of the shareholders were fixated on rumors of a reversal because one had happened before. “There’s no plan for a reversal,” he said, “but if they keep jacking with me, it could occur.”
When Albom asked for a clarification, Karney explained that he could authorize a thousand to one reverse split. “So those gentlemen out there with 100 million shares will have 100,000.”
The reaction to the tense exchange and Karney’s comments afterwards caused a significant volume spike in the company’s shares, which trade as PDSC on the Pink Sheets. Normal trade volume is around 41,519,400, while today’s volume was at 567,058,600 at around 1 p.m.
Share price has lived somewhere around the .001-.002 area for months, appearing as a flat line in most three month charts. Intraday charts show a lengthy dip to .001 in the hours following the 9:30 CDT interview, but at 1:30 p.m. shares were trading at .002.
The reaction was also visible on several message boards, including the one on MN1.com, where a viewer named Rolloverpete said Karney “is nuts.”
“What an interview this is,” the writer said. “Thanks a lot Karney what about the people that have a million shares and they somewhat believe in your company you are going to screw us and leave us with crap? What a jerk!”
Reaction was similar on other boards, including www.investorshub.com, where stockbum9 said he was “disappointed (and almost embarrassed)” by Karney’s statements.
“It sounds like he doesn't care too much for the shareholders because we actually only hold 7% of the company,” stockbum9 wrote.
“I think Karney wants to take the company private, he has done everything he can to discourage shareholders and with today’s selloff there cannot be many left holding, like me the dope still sitting on some,” luvtradin1 wrote on Investor’s Hub.
Luvtradin1 said his experience with PDSC and other pink sheet companies left him with little stomach for trading in the venue again.
“This is my last pink, they can all go to hell from now on for all I care,” he wrote. “POS CEO's just rip people off continuously; I am done with this chit.”
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