Aug 25, 2010
A month ago I
wrote about how the "management" at EurOmax (EOX-V)
has been mismanaging the company. The company has a burn rate
of $500,000 a month, BEFORE legal fees and is spending about
$16,500 a month on actually advancing projects. Basically the
entire company is being run for the benefit of management to
the detriment of shareholders. Yesterday was the annual meeting
and "management" proved my point.
EOX has about 120 million shares. 69 million of those shares
were voted to dump the entire board and to install a new group.
A mere 26 million votes were counted to retain "management".
73% of voting shareholders want new management, 27% are OK as
The concerned shareholders released this
press release this morning. After losing the vote of shareholders
by an overwhelming percentage, "management" wants the
courts to sort it out. "Votes, we don't need no stinking
votes." Needless to say, their perks and salary and outlandish
spending continues until the court dumps them or the company
runs out of money first.
The excuse given by EOX Chairman Robert Power was that the company
wants to throw out the votes of their biggest shareholder, Anthony
Patriarco and any votes solicited by former CEO John Menzies.
The only logical problem with that is that if you throw out those
votes, "management" would still lose.
According to Power, he wants "to ensure that shareholders
are able to make a fully informed decision." I agree. So
here it is. The clowns running EurOmax have totally screwed shareholders
as long as they have been in power. Against odds of a thousand
to one or more, shareholders have managed for the first time
that I am aware of in years, to actually vote to dump incompetent
I've heard hundreds of stories from shareholders of various junior
mining companies about how they feel that management doesn't
give a damn about them and the companies are being run strictly
for the benefit of management. It's true. Most juniors are run
to generate a paycheck for a bunch of clowns who would otherwise
be on unemployment. When you consider buying shares in a company,
pull up a three year chart and compare it to Press Releases announcing
the granting of yet more stock options to management. It's a
rigged game, rigged for the benefit of the insiders who hold
EurOmax shareholders have voted in overwhelming numbers to dump
Power and Serin. It's time they pack their bags and go destroy
some other company. Let's see just how long it takes for the
vote to actually be heard.
EurOmax Resources Ltd
EOX-V $0.13 (Aug 24, 2010)
EOXFF-OTCBB 119 million shares