AMW is now trading at a new all time low. If you are still in this disaster, you are feeling the pain. Today AMW issued a press release stating it had received a letter of non-compliance from the American Stock Exchange. The AMEX has two major concerns- the company’s failure to file its financial statements on time, and the fact that they are in default on a note for $6.2 million and counting with Laurus Funds.
The first issue is easily remedied- just file the damn 10Q. Nearly every other company in the public markets does it- I don’t know why AMW cannot seem to meet their reporting obligation in a timely manner. Certainly, it gives no comfort in terms of management’s capabilities.
The second issue is far more menacing. The issue of the default on the note. One of two things will happen- either they will make some kind of deal with Laurus and come out of default, or they will probably have to file for bankruptcy to try to protect their assets from being seized by Laurus. I have not reviewed the terms of the notes, but I would guess AMW pledged its assets against the note, and Laurus has a UCC filing on the assets. I’m no lawyer, but I believe this means Laurus would get the assets even if bankruptcy is filed. On the potential positive side, I’m sure Laurus doesn’t want a lengthy legal battle, and has no interest in owning the two remaining bottling facilities.
Not much to talk about as far as the chart is concerned, but another new all time low on a big volume spike. I don’t know what will happen here and have no contact with management, but it sure looks grim. You have to make your own decision about what to do, but it sure seems at this point the stock is a sale for a tax loss. I wish I hadn’t been so right when the stock traded up briefly to $.40 in September about taking some or all of your money off the table.
If anyone has any input on whether they would still retain their bottling plants in a bankruptcy, that would be helpful. Please post a comment.
Another top notch pick!!!!!! Way to go!!!!!
Editor: Typical moronic comment. I guess you have been smart enough to read all the cautionary language I have published on AMW- things like “one foot in the grave”, and “you should sell some or all” back when it spiked in September. You think I like providing my view point on this mess? I just share it as a courtesy to those who are stuck in this disaster. I’m not the one who publicly stated the company would achieve $80 million in revs in ’05- that was Mohlman. You should not be in the speculative end of the market- it is not for you. Start taking some personal responsibility for your own decisions.
You are right regarding the bankruptcy filing and possession of the assets. As a secured lien holder Laurus has first in line access to the collateral……..then, the unsecured creditors come next. We common stock shareholders are last in line and we will get absolutely nothing. The only good feeling is that when we shareholders go down….we are gonna take that damn Mohlman down with us…….and he has a hell of alot more shares than anyone else. I remember all the hype made when Mohlman pledged to purchase $4MM in stock on the open market to show his support for the company. He only purchased a token amount of his promise. That told the story story didn’t it………..the major shareholder and largest investor didn’t even want the damn stock!!. So, it will be over soon and the rest will be history.
Editor: So- it’s simple- it will be over by December 23rd- if the company submits a plan to cure its deficiency by then, it will have to include some sort of settlement with Laurus. I have no idea if they can pull that off. I’m sure Laurus does not want to own the plants, but according to the vague Q3 early numbers, the company has $16.1 million in assets to go after. As you say, if it goes badly the common stock shareholders will lose all their money. The only comfort we can take is that Mohlman will lose a hell of a lot more than anyone else.
Smells of fraud.
Editor: Fraud implies lying. If making bold predictions and having them not come true is fraud, then he’s probably guilty. To me, it simply reeks of failure, not fraud.
Editor,Hello if you talk to Mr.Mohlman tell him to give me a call I need to turn my key back in for the Jax plant I still have it no one will return my e-mails or Phone calls. Thanks for your time! Good Luck!
Editor: A good luck to you as well.
Will simply say that I questioned you early on as I saw several articles about how Roger M. had basically been a con artist on several occasions before. You dismissed my comments by saying that he would not have been able to get the company in it then current position if he was not above board!!! Would ask what you have to say now but being $10,000 lighter thanks to your hired gun endorsement on this one…. I ‘ll leave it there. Oh yea there are some solid other picks of yours like FMLY, BPTR, gosh I could list more but why add to the misery!!! Don’t know how you sleep at night but ripping people off comes naturally for you. Love and Kisses from another UNSATISFIED CUSTOMER of OTC Chris
Editor: I have been cautioning investors about this stock for over a year, and suggested a sell when it hit $.40 in September. If you chose to hang in there, don’t blame me. You have had all the facts. If you are mistaking my coverage with a suggestion to buy or even hang in there, then it is your problem. As with FMLY- I have been telling people to sell the stock since last June. Of the three you mention, the only one I still own and believe in is BPTR. Don’t mistake my ongoing coverage of events as a suggestion to own or buy. After a certain point I only do it because I know a number of subcribers might still own them. You should have been out of FMLY and AMW a long time ago. Try taking some personal responsibilty. I do when I have a bad idea. You should as well.
Although I finally bailed out of this pos at a substantial loss, I am curious to get your opinion on the most recent SEC filing. What must Mohlman have up his sleeve if he traded debt for equity in the amount of 33 plus million shares. Given the current financial condition of AMW, why did he substantially increase his share holdings? What do you think is going on?
Editor: I believe it is meaningless. Obviously, he is not going to collect on the debt. If he is attempting some kind of workout on the remainder of the debt, he might have needed to get rid of his own debt first. I don’t know. No matter what is happening with the debt, the company’s inability to file their financial statements spells the final death knell to me. This BLOG will be gone shortly as I am through with this company.