This is a letter I faxed in on Monaday 9.00 AM looking for answers
Attached was all contact information and signature. Their receptionist said that she would put a copy on each persons desk.
Dear management of Phoenix Associates,
This includes Paul Alonzo,Carolyn Alonzo, Ron Blackburn, and Dennis Kowalski. I am writing this letter as a very long-term and loyal shareholder to this company. I've been with this company for well over two years. I supported this company by not only buying a lot of shares myself, but have brought in many shareholders as well. I've also spent countless hours bringing new investors into this company via the message boards. I have developed a relationship with many shareholders in this company. I must say this company has many dedicated and loyal shareholders. The messageboard activity is tremendous. That is a very healthy sign that you have a very robust, and loyal shareholder base. I've been investing in pink sheet and bulletin board companies since 1997. My experience over these last 10 years has been tremendous in regards to stocks that trade at these price ranges and on these exchanges. I currently do investor relations for an ethanol manufacturer out in Los Angeles. I think I understand very well the concerns and needs of the average shareholder. There are many companies that defraud their shareholder base that trade in the pink sheet arena. I've been defrauded countless times and also tend to be a cautious investor as well.
First I want to congratulate the company on a job well done building this company. Over the last year I've been very excited about all the positive developments that have been put forth in press releases. I've also have a lot of nice conversations with Ron Blackburn, and look forward to the future progress of this company. It's amazing what this company has accomplished in such a short period of time. Ron has invited me many times to come down and visit the company. I look forward to the day I can meet everyone in person.
Now for my concerns to create hopefully better harmony and peace between the shareholder base and the management of this company. Many people were shocked to find out that the company had full issuance of authorized shares. With that said I still feel the company is very undervalued even with full dilution. I as well as many other shareholders, are concerned about the most recent information posted to pink sheets. There are many questions that are unanswered, in the most current filing.The questions below if answered will bring a lot of peace and harmony to the overall shareholder base. There are many sophisticated investors in this company and the current information just does not fulfill the needs of these shareholders.
Please be patient, I will do my best at asking the questions in the clearest manner that I can.
First question
How many shares does management currently own of the common stock, as well as the different preferred classes.
What is the breakdown of each board member or other management?
Second question
How can we be at full issuance? It looks like to that we retired approximately 47 million shares of the preferred 2 class.
It just doesn't make sense to have full issuance from our understanding? Also most people were expecting around 815 million shares to be outstanding,
and instead there is 1,750,000,000. Who were the other 935 million issued to, and what breakdown.
Third question
Item 6 of the most current filing says that Phoenix forecast potential mining and sales capability at between 4 and 8 million annually. The company has already publicly announced that they have a contract for 20 million with Cherokee. I also remember seeing a very large contract in the most recent newsreel. Why are these numbers so off?
Fourth question
The company filed 4,107,000 in long-term liabilities. When you look at series 1,2 and 3 preferred stock it looks to me that the long-term liabilities are much greater. Could you please breakdown what the long-term liabilities are for series 1, series 2, and series 3. This would help greatly in helping people understand the overall financials. Why does long-term liabilities seem so off the mark when you compare it to the debt obligations on the preferred?
Fifth question
Could you give a more complete explanation of series 1 preferred and series 3 preferred so that we can understand these two new classes better.
Also who are the shares issued to for series 1 and series 3? How may shares did management convert into series 1,2,3, if any?
Sixth question
As shareholders we would all like to to have an update on how each division is doing. The progress of each division, and maybe some forward guidance numbers
on what we can expect from each division?
Seventh question
What are the current salaries of management?
As a side note. I think transparency is what is greatly needed at this time. Most people are thrilled with the progress of the company, but need to see the fine details so they can feel more comfortable in their investment. If the company has nothing to hide, then there should be no reason not to answer the questions and concerns from many of us. The shareholder base in this company is extremely loyal, and have worked very hard to promote this company. It is very important to always bring new shareholders into the mix. Please lets not lose all the momentum we have been building over the last year in this stock. I don't want to see all the progress that has been made up to this point, to be hurt or impaired in anyway. With all the naked shorting that has gone on in the stock over the last year, I feel we want to keep as many people on board so that we can break the shorts sooner than later. I know personally many people who have their life savings in the stock. People who have mortgaged their house. I can't tell you how may people I know who have lost sleep worrying about this stock. A lot is riding on this for a lot of people. I'm not mentioning this to make management nervous in anyway but to show you how much faith people have entrusted into this company.
The last note. I have known Mike Mullshine for a long time. He definitely understands this arena to a large degree. You pay Mike Mulshine a decent salary to communicate with shareholders. What's most important is that you communicate with Mike so he can do his job more effectively. If Mike could be kept in the loop better, and had many of these questions answered, things would go much smoother. I'm sure the last week the company has been bombarded with phone calls. I'm sure management is extremely busy, and doesn't have a lot of time to be taking numerous calls from shareholders. If the company could just be more transparent in their current filings and try to do a better job keeping us up to date, we would all be that much better off. I look forward to hearing back from you as soon as possible in regards to this matter that I've addressed. Thank you. Answers to these questions will alleviate a lot of fears and have a much more positive impact on the share price.
Sincerely,
Loyal Shareholder
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