The Circus Continues…The stock lost another $0.01 this week following the latest Press Release. The company again did promises that that never materialized. It is hard to believe that these guys continue to play the same game over and over again.
The last chapter is also interesting and worth mentioning… it shows us that not only the company is not delivering as promised, but on top of that the company is releasing false information.
On June 24, the company issued a Press Release stating that the company “has been awarded a FLU-ACE® major equipment package supply and engineering services contract by Johnson Controls LP (JCLP) for installation at a University customer located in Ontario.”
All in this Press Release was indicating the contract had been already signed and was binding (not dependant on any pre-closing condition).
The company was already considering this contract as part of their work load and as an achievement for the current year: “This contract is valued at approximately $325,000 and brings the 6 month cumulative value to just over $ 1,300,000.”
We even got an insider (“onTHEinside9”) who came here on this board to talk to us about this contract and highlight to which extent the company was doing well (onTHEinside9, are you still here???).
He qualified us as “Desperate Posters”… He told us that “the greater majority of people would probably fail at running a business”. He was simply arrogant.
We learnt two weeks later that this contract was finally non-binding: “The final physical binding contract is currently being drafted by both parties and the Company expects receipt shortly.” That was the appetizer. I found it funny the way they introduced this Press Release: “As a result of shareholder questions, Thermal Energy would like to provide this clarification to the Company’s News Release dated June 24, 2004…” They acted like if all the information was already of public knowledge and just wanted to give more clarity, while in reality they were simply trying to hide a mistake (and avoid possible legal proceedings I imagine).
Two weeks later, we finally learnt that the Company had decided not to proceed with the Contract (the “cat” was out of the bag).
I work for a public company and for one I can tell you that we sign non-binding contracts on a regular basis. Nothing obviously is made public when we sign non-binding agreements. It is business as usual to get in touch with other companies and initiate discussions. We would simply make fools of ourselves if we were to make an announcement each time we get in discussions with a partner.
Who’s actually desperate? The answer now is obvious. The company is so desperate that they issue Press Release to announce non-existent contracts.
And who’s actually failing at running a business? The answer is also very obvious but I will let our friend onTHEinside9 give the answer.
Mart