email exchange with michael, page-70

Hi dc1234,

Thanks for sharing your email reply.

"Those who want to find something wrong they can find plenty. Its a risk/reward thing to invest in such companies and mostly it is to an individual why they select one of the specs and not the other. Same negative comments can be applied to any share that falls in this category. Some do it for due diligence, others to have a life"

The use of the terms negative/positive, upramper/downramper or naysayer/yaysayer are often used loosely, out of context and far too frequently on hc imo. I'm not having a dig at you at all because I believe your argument does have some merit on the ISN threads.

There is no shortage of low content posts for both sides of the debate, however one observation slowly becoming more prevalent is a lack of healthy discussion and debate. It appears to make very little difference these days how indepth or substantial a contribution may be as many posts are immediately judged on sentiment alone.

As I don't hold ISN and this post will express my concerns with the company email, most holders/supporters will be quick to caterogize this as a "downramp", however I honestly do have some interest in Isonea.

I'm just not yet comfortable she's all she's being made out to be.

CEO, Michael Thomas checks out fine with good past credentials, however there are a few points which I believe raise concerns:

In regards to your email reply from Mr Thomas, you wrote:

"He said he is also concerned about the share price decline all the more because he also holds 44 million shares and all of this he has bought from his own money at much higher prices than what is today."

If the CEO of any publicly listed company tells me that "...he is also concerned about the share price decline..." that's not indication of confidence I'm looking for.

If the CEO of a publicly listed company is truly confident in the technology platforms and the road moving forward for his company he should not gives two hoots about the market driven sp.
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Further concerns:

Last year on 28/08/2011 Mr Thomas provided this first introduction letter to shareholders which stated in it, "To expedite this growth the new board of Directors and new management team have been diligently collaborating with several key strategic partners on projects that will yield meaningful shareholder returns. These collaborations will leverage the strengths of Global Fortune 500 Health companies with a substantial footprint in key markets of interest to Isonea. One of the partnerships, (Omron) has already been announced. We will announce several others before the end of this calendar year

Investing 101: Look for management teams with a track record of meeting publicly-stated goals and development milestones. Meanwhile, be wary of companies that regularly miss their targets.
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Another email:

17/10/11 - Post:7295125 by greendayone - re:email for ceo

"Company will list top 20 in the annual report, then it will release an update on that list because some “big buyers” didn’t have their purchases listed by the ASX at the time we printed our Annual Report"

some "big buyers" didn't have their purchases listed... = Ramping + it should be noted that the percent holding of top 20 has not increased, but instead decreased by 10% - which suggests the rights issue wasn't supported by the original top 20 "big buyers"

19/10/2011 - Annual Report: Top 20 held 39.49%
22/12/2011 - Update spread: Top 20 hold 29.93%

* Mr Thomas appearing in the updated spread is a very positive sight for shareholders - No person can deny this.
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The following "email reply" abstract was kindly shared by greendayone...

29/11/2011 - Post: 7473626 by greendayone - reply from ceo

From: Michael J. Thomas ([email protected])

"Many of the small shareholders (none of the larger ones except for one) complained that the Bergen deal wasn’t shareholder friendly. So, once we complete this Rights Offering, we will postpone the Bergen deal (possibly indefinitely). The Rights Offering gives the company cash up front versus a monthly draw. It enables us to accelerate milestone achievement by about 6 months.

I have invested nearly $150,000 of my own money in ISN and am committing another $182,000 in the Rights Offering. I am one of the 10 largest shareholders in the company. I see things that you can’t. I have assembled one of the best management teams in the respiratory medical device marketplace and am betting with my own money that we will increase shareholder value ten fold over a 24 month period. We are on the verge of initiating a very aggressive Public Relations and Investor Relations campain in Australia and in the US. Anyone getting into the stock now will be rewarded. The selling is short term. The company founder (an Israeli physician, whom I fired several months ago) had dumped a decent portion of his stock. This artificial selling pressure will abate very soon…

Michael J. Thomas
Chief Executive Officer
iSonea, Limited
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"Many of the small shareholders (none of the larger ones except for one) complained that the Bergen deal wasn’t shareholder friendly"

How dare those "small" shareholders complain about the 0.003c Bergen deal Michael. Damn those worthless little people & their 71% holding!
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"So, once we complete this Rights Offering, we will postpone the Bergen deal (possibly indefinitely)."

11th January? I didn't see anything, did you?
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"I have invested nearly $150,000 of my own money in ISN and am committing another $182,000 in the Rights Offering"

This one has me stumped. I thought rights issue was done at an issue price of 0.5 cents ($0.005) each?

So if Mr Thomas had already invested $150,000 of his own money and was committing a further $182,000 in the rights offering shouldn't his holding then now show more than a total of just over 32,533,212 shares on the register?

$182,000 x $0.005 = 36,400,000?
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"I am one of the 10 largest shareholders in the company."

Sometimes my best investments are the ones I don't make
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"I see things that you can’t."

Have you seen listing rule 3.1?
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"I am betting with my own money that we will increase shareholder value ten fold over a 24 month period."

So far so good...

17/06/2011 - $0.014c
15/02/2012 - $0.006c
- 57.14%?
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"Anyone getting into the stock now will be rewarded."

Yes, we need to attract more "small" people to continue rewarding Bergen's selling effort
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"The company founder (an Israeli physician, whom I fired several months ago) had dumped a decent portion of his stock. This artificial selling pressure will abate very soon…"

"an Israeli physician, whom was fired by you several months ago..."?

Perhaps a more professional approach could read, "The company founder, inventor and assignee of Isonea's innovative, non-invasive technology patents, Dr Noam Gavriely dumped ALL his stock and is no longer working for the company...

Perhaps Dr Gavriely knows more about the new KarmelSonix New Website
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Haven't seen any formal announcements from Qualcomm as yet although it appears questions are also being raised regarding true ownership of their own technology...

PARKERVISION, INC., Plaintiff, v. QUALCOMM INCORPORATED, Defendant.