I love a mystery. I have a client that is using a quote from G.K. Chesterton and I asked if he liked his work., unfortunately the client liked the quote but was unfamiliar with the author of Father Brown, The Napoleon of Notting Hill and the Club of Queer Trades.
But I digress, I was given a business card from a gentleman in a networking group with me regarding a client of his, unfortunately I was never given the ok to contact the client. But in researching the company I found a number of things that the further I looked the more I wanted to find out the answers.
The company was a pink sheeted company. The market cap rate of the company was about $68,000 and trading at $.01 per share. The company made roughly $11mm in 2010 and had a profit of $300,000. The owner at the time took $16,500 or so in salary. The only voting shares were the preferred shares so the holders of the common stock are SOL.
Apparently the ownership was to change and that is why I was possibly going to get a chance to meet with the new ownership. I am assuming that the sale was of the preferred shares only. But Revenue looked to be trending down for 2011, and a quick guess will be short of 2010 numbers by $2mm or so. That is unless they typically cycle higher in the 4th Qtr (unlikely).
I also found it fascinating that the company lost market capitalization from $.20 a share to less than a penny within the last year as well.
I do love a mystery, and I will have to check in and see.
But, it would have been a sweet client; Quarterly SEC filings as well as year end write-up work and tax returns. Also looks like they needed consulting from a different perspective of their business.