Okay guys (and gals), here is everything I've got. I've spent hours on the phone this weekend. I have some good news and some bad news.
First the good news for SaVi shareholders. The claim forwarded by me that SaVi management may have a motive to force the sp down appears to have little merit. The person or persons who made that accusation have now backtracked from that statement because they cannot prove it. I asked point blank for specific proof but it was not forthcoming. Needless to say I was quite distressed Friday afternoon, like most of us, and spoke before verification. This is why I wanted to wait until tonight. Luckily I do not believe I influenced anyone to buy or sell because it was after the session ended on Friday. Otherwise I’d feel pretty bad.
In fact the next bit of information, which is the bad news, will most likely prove that the exact opposite is true, and management has every reason to want the share price to go up. And that is:
Way, way worse dilution of the common outstanding shares than we have been talking about. And I am not talking of the 2.9 billion Cornell shares. I am talking about our current stated outstanding of 507 million. Wrong, it is over 3 billion. Let me explain. This was brought to my attention by someone close to the company, but not an insider, whom I believe to have considerable integrity. I just received a fax from he/she with the following numbers.
"If you count all the current common stock owned by SaVi insiders and add to it all the exercisable stock options going out one year from today here are the total insider ownership numbers broken out by individual. These include stock with an exercise price of .00025, which means they will be exercised by insiders even if the sp cradles to .001. Even at that puny price they return 400% on their money so they will exercise.
Lets begin with the insiders with the most shares owned:
Serge Monros 780 million shares
Kathy Procopio 660 million shares
His Devine Vehicle 655 million shares
New Creation Outreach 655 million shares
Mario Procopio 125 million shares
Steve Botkin 100 million shares
G&K Automotive Conversion 100 million shares
General Alexander Haig 50 million shares
Alexander Haig, Jr. 50 million shares
Cyrus Project 40 million shares
There are a few other insiders who have a million here or a million there but these are the big players. I believe His Devine Vehicle and New Creation Outreach are Mario and Kathy Procopio’s ministries. I know G&K Automotive is SaVi’s landlord (the G stands for George) so we now have definitive proof SaVi is paying their rent with shares. I do not yet know what the Cyrus Project is – perhaps someone in your group, XXXX, would know.
The total above comes to more than 3.2 billion shares. They will definitely all be exercised in the coming year. Add the 2.9 billion for the Cornell deal and we are already over 6 billion. My guess is the BOD will soon raise the authorized to 10 billion. This will of course not be necessary immediately because many of the Cornell shares are exercisable at above a penny and would not be exercised unless we got back to that price or went higher, in which case there will be no problem for us current shareholders."
So that's the brunt of the fax I received.
My take on the Cornell deal now that I’ve had a chance to cool off and actually use my brain over the weekend: this is not the end of the world for longs. Obviously the company was in far, far worse shape than we believed. No one and I mean no one was talking possible SaVi bankruptcy over the last few months on this board, so it is foolhardy to argue the Cornell deal is good because it means SaVi won't now go bankrupt. The company chose not to say anything about financial woes. That is just flat out wrong. I believe Mario Procopio and his wife, and other insiders are greedy and not very Godly. And yes, they must have needed this deal bad in order to continue funding operations.
Sometimes greed for lack of a better word is good, according to Gordon Gecko. It is possible this greedy little man will bust his behind to better this company if only to line his own pockets further. We now know for sure that they will never ever do anything to benefit shareholders outside the inner circle. Our hope is that his goals line up with our goals.
I will not sell. Call me fatalistic but I’m gonna go down with the ship on this one I believe. It is money I can afford to lose and money I will lose if it comes to that. Such is life in Pennyland. If it happens, this won’t be the first time I’ve lost my entire investment on a penny stock. Luckily my 10 pops outnumber my busts. If this pops to over 2 to 3 cents in the coming year I will probably exit or partially exit. If not I’ll see y’all at .001.
Best of luck to all of you and your investments.
Shaq
