simon ehrenfeld delusional, page-169

Looking at the company's past three years annual reports, which a fiction writer of some note might admire for the ingenuity displayed in describing an ongoing disaster in such up beat terms, the problem in terms of the current management, ignoring the quite obvious lack of educational, financial management and intellectual rigor qualifications,appears to be threefold.

Firstly, there is no stated objective for Eftel existing at all in terms of either a market strategy or a financial strategy.

Secondly, as you correctly point out, all of the acquisitions made have never delivered one dollar of profit at the end of any reporting year and therefore, again as you point out, including the acquisition costs for these entities in the assets of the company is nonsensical.Therefore there will continue to be write offs until the "good will" asset disappears from the books leaving an even more obvious insolvent state.

Thirdly,and irrefutably, the company simply never makes any money with the latest "declared profit" and "one tenth of a cent dividend" being either an outright lie or demonstrating the fact that the current directors haven't got a clue about the accounting records of the company they are running - I'm referring to the need to write off some as yet unknown sum of money which is at least more than double the "declared profit" of only a few days before the need to fess up to the write down.

So Eftel appears to have a well established track record of only being able to make a loss year after year with every acquisition it has made not only not contributing a profit but actually adding to the loss.

Announcing a dividend when the company continues to lose money and has no prospect of making money and has a net asset deficiency seems to be both contrary to common sense and almost certainly unapproved by the company's lenders.