Replies to post #88024 on Cartel Blue Inc (CRTL)

[was BearsnBulls]

It was not something someone said. It was something we have observed.

As far as the class action lawsuit goes, I think it is ridiculous. The only people who win in a class action lawsuit are the lawyers. If you are really invested in this company, then why would you want to throw yet another stumbling block at Peter's feet? If he is struggling with cash, do you really think it is going to help the situation to force him to go out and hire an attorney to defend against the lawsuit?

What if you win? What are you going to get? Sure, the land, cars and equipment can be sold off at auction and it might bring in a million. At the current AS of 1.5 billion, that will mean a maximum of .00066 per share assuming there is zero debt on the books. But wait, let's not forget the legal fees. Peter's legal fees will no doubt be shouldered by the company which will mean a little more debt that will have to be resolved when the company is liquidated. Now let's talk about the attorney fees for the one who files the suit. Maybe if he is your brother-in-law, he will take the case for a 25% contingency if you are on good terms with him. Otherwise you are looking at 30 to 40% plus costs and that comes straight off the top. When it is all said and done, you will be lucky to walk away with .0002 to .0003 per share. You can do that now by selling your position and save the rest of the investors a lot of grief.

If Peter were sitting on great personal wealth in some account somewhere, then a class action suit would be a possible alternative. That does not appear to be the case and filing such a suit would accomplish nothing more than delaying progress or finally just putting the company out of business. As long as the doors are open and the lights are on, there is still a chance that something good could come out of this mess.

Bottom line is that selling now will net you about the same result as going through a class action lawsuit. The only difference is that you get your money now and some attorney will not get his 300 to 400k payday.


I am a no frills kind of guy.