"NEW BEGINNING"
I see that Leung is once again declaring a new direction for the company. This time he is calling it a "new beginning." I am reminded of the slogan he used 2 websites ago. "We are Everywhere." In reality the slogan should have said, "We are nowhere."
Has anything changed?
If you go to the MD&A, page 7 you will see that Leung is continuing to pay himself and others exorbitant salaries which are very rapidly diluting the stock. The company now has 71.4 million shares outstanding. In addition Leung has 30,000,000 options from the $2.7 million loan he converted a year or so ago and that total is growing exponentially with compound interest at around 10 or 12%.
There is also another loan of about $2.1 million that is growing rapidly at the obscene rate of 10% annually. [$230K interest already]
If converted today to share options at a nickel it would add another 55-60,000,000 shares. The current rate of conversion for salaries alone that Leung has been using will add another 10,000,000 shares [not options] for 2014.
That puts the common shares around 78,000,000 at the end of this year.
Add all Leung's options and the company is already over 175,000,000 shares, fully diluted.
For $7.1 million in 2005 investors were given around 3.2 million shares. We've been financially raped.
COMPENDIUM
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Leung claims EPT has developed a "compendium of state of the art" products to sell. Really? Obviously compendium means numerous.
If this is true then why haven't these products already sold? They were developed years ago. Not a single unit has been sold in most cases. None of them have ever even come remotely close to recouping their developement costs.
It can't be both ways. If they weren't salable then they are not salable now.
Could there be another explanation? Could they actually be salable but Leung has been sandbagging the sales effort to prevent revenue and the stock price going up? It sounds absurd, I realize that but it was only 2 or 3 years ago Leung was pleading poverty when he claimed he only had around 1.6 million shares. What he didn't mention was that he had started with about 10 million shares when the company was founded in 2000. He sold off or transfered around 500k shares and then transfered 9.5 million shares into an un-named immediate family members name.
If Leung wants to give away his shares that fine with me but its unethical for him to come back pleading poverty without full disclosure.
So why would Leung want an ultra low stock price? Look at what he has been doing since he claimed to have only 1.6 million shares. He has been transfering 10's of millions of shares into his name and his wife Amy Chan's name for loans and salaries. He would not be able to do that so rapidly at a higher stock price.
I know its a bizarre theory and its only speculation but who would put it past Leung with his history of withholding material information?
Internet of Things
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If the plethora of articles online about IoT are to be believed there is enormous potential in IoT for companies who know what they are doing and are well positioned.
Sierra Wireless began preparing for IoT in 2012. Their stock has risen from $8 to $28 in that time. Institutional buyers are lining up to buy SWIRR.
Of course, SWIRR has outstanding leadership in CEO Jason Cohenour and his supporting cast. Empower has had Leung for nearly 15 years leading the EPT crew.
Leung is still claiming on the website to be a visionary. He puts himself in the same league as Steve Jobs, Bill Gates and Warren Buffett. These men are true visonaries. Leung is a bumbling screwup who has burnt through $32.7 million and EPT currently has a market cap of $1.3 million. The stock has been offered at 2.5 cents for the last 3 days with no takers. Thats right Leung, you're a visionary alright!
Try to imagine Cohenour booking the room for the AGM for 30 minutes, using 25 minutes to vote himself back in as CEO and then asking for questions which he then refuses to answer and starts yelling to drown out legitimate questions. Of course it would never happen. Thats how Leung runs the AGM. Cohenour is a highly regarded man of integrity and talent. He is the opposite of Leung.
The shareholders and board would be so appalled by this behaviour that an emergency meeting would be held and he would be fired. But in Empower's world Leung just carries on.
The best predictor of future performance is past performance. Leung is no more competent today than he was 15 years ago when he began sucking money out of people for one harebrained scheme after another.