When Ike Sutton says SAVW plans to do something it doesn't mean they are committed to do it. You have to pay close attention to the nuance in the language, it's the only way to protect your capital.
As far as hiring in general: If SAVW received some funding through Industrial Revenue Bonds they may have minimum hiring commitments to the State of Maryland irrespective of turning a profit. Basically that there are employees now doesn't mean those people are productive or that the company is generating significant revenue. That's why you need to look for PR's announcing production contracts at the assembly plant (big red flag for investors right now).
I wrote about this a couple of weeks ago as worst case scenarios in post #44191:
1. SAVW is a complete fraud and has run off with investor money. I don't see this as likely, but it's possible. Ike is paying himself through massive dilution not absconding with company assets as far as we know.
2. SAVW has lots of inventory on-site and lots of workers. Without production contracts this means the employees are underworked and the company is burning cash to hold unwanted inventory. This is potentially much more damaging than simple fraud. That would mean there's no business case for the company to exist. It would however provide some logic to the massive dilution.
Sounds like SAVW is the worst case: inventory and workers but no production, leading to massive hemorrhaging of cash. Ike Sutton is meeting his financial obligations to the State of Maryland by diluting shareholders. Look for A/S to increase to 9.6B by year end 2011.
Good luck to everyone in this dilution fest.
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