Monday, August 15, 2005
funny stuff: when presidents go bad
The plaintiff, Engineering & Wireless Services, Inc. ("EWS") demanded payment of $27,748.71 for services rendered to the Company in 1996 and 1997. The Company's President at the time, John C. Spradley, had written a check for this same amount on April 2, 1997 that was returned, unpaid and marked "NSF". Mr. Spradley wrote this check without proper authority by the Company, and actually was strictly forbidden by a board resolution to write any checks in excess of $5,000. The writing of the check to EWS left the Company legally obligated to honor this check.Bad, bad president!
In the "not-funny-ha-ha-but-funny-what-the-hell-are-you-doing" department, YaSheng Group (YHGG) today announced it had gross margins of 100%. That's right, zero cost of sales.
YaSheng Group (Other OTC:YHGG.PK - News), with second quarter revenues of US$196,012,453, published today details of its financial results for the second quarter in 2005.
For the second quarter ending June 30, 2005, the company's operating income rose to US$196,012,453 with net earnings increasing to US$22,688,136, or .15 per share, an increase of 15.38%, versus .13 per share for the same quarter in 2004,
based on 155,097,355 issued and outstanding shares.
Oops! They didn't make the same mistake in the PDF file, but they made... another one there! They show the 6 month "other operating expenses" as being lower than the 3 month "other operating expenses". Holy crap!
UPDATE 8/18: YaSheng issued a correction today.
On the humorous side of funny, keep in mind that this is a serious Chinese company which apparently, like so many, did a reverse merger into a washed-up US business. I didn't use the [sic] notation for errors of English to avoid cluttering up the text (their English is far better than my Mandarin). The Company is involved in digital TV in China.
Edward A. Roth, our former Chairman and President, as well as the consultant and manager of our former businesses in this country, had unilaterally, and without the approval or our consent, terminated the operations of the our three beauty salons located in South Florida, on or about February 7, 2005.
Such termination was not reported to us by Mr. Roth, and we did not find out about this bizarre action until our counsel spoke to an agent for one of the landlords on April 18, 2005. When we were confronted with this breach of contract and breach of fiduciary duty by Mr. Roth, the Board of Directors promptly discharged Mr. Roth as a consultant to all of our subsidiaries and as an officer of the same.
Bad, bad president!
But as for the response, I say Damn Right! Someone has to uphold respect for the principles of business and economic activity.