Yeah, I have come to realize this reality SPIN ... but it gives me something to do when I want to avoid paperwork on particularly boring days at work (or doing work at home).
The truth is that if I had read the filings a little more closely a few months back, I wouldn't be here, but that's life. When I jumped in, I did so knowing there was a mountain of debt, and the company had been run into the ground, but I thought I would roll the dice on the new management and the "chance" (and I recognize it was/is slim) of a major contract being in the works. This did (and still does) seem a calculated very high risk, as I thought there had to be some reason why individuals like Messrs. House and Spencer were sticking around rather than just packing it in and declaring the company bankrupt/defunct. So, eyes open, I threw a little money down - when you're in Vegas, you have to spin the roulette wheel at least one time ... even if you know the odds of winning are just stupidly poor.
After I did so, however, I spent a few "oh so fun" nights studying the financing agreements in detail and rereading the director/officer compensation plans and the Weisel payout agreement. Ha hahahhahahaha ... okay, that was fun - sort of like cold shower on a January morning (in northern Canada) fun. My fault entirely - I should have read them with that much attention the first time, but the compensation numbers didn't seem excessive at first glance and the details and realities of the financing agreements were a little obscured by the density of the legal/contract language used. It was only when I sat down with a calculator and a pad of paper that I figured it all out (debt details and share dilution realities) and realized there is a very valid reason why most/all investment professionals advise people to just steer clear of true penny stocks. But, it was and is my fault - buyer beware after all.
As I have said, I do think the current management is trying hard to keep this company alive and turn it into a real product-producing and revenue-generating concern (as opposed - from what I have gathered - to the former management); however, I have also come to believe (as you noted SPIN) that the interests of outsider investors rank pretty low (or not at all) on the directors'/officers' list of concerns. This, of course, is the opposite of how a public company should behave, but welcome to modern capitalism ... and the current general market crisis/instability.
So ... I will not put any more money down here (unless it were to be a pure speculation day/week play), and - unless something dramatic changes with the share "payout/compensation" situation - I will never recommend investing in this company to anyone else (just the opposite really, as I have shared this "investment fable/lesson" with quite a few friends/people in the last few months ... several of them investment professionals ... who, of course, dumped the "I told you so" crap on me :-)). And, if the share price climbs just a little above a penny, I will probably sell off my shares (as will the "employees/directors" who hold tens of millions of recently "repriced" options at $.01 ... ridiculous); but in the meantime, I will continue to look for "floats" ... everyone needs a hobby.
jt
News 
Market Data 
Discover 
