Here is a lesson for all small cap stock traders. When buying...

Here is a lesson for all small cap stock traders.

When buying into companies like ESI you buy into management and there boards.
My review of what has happen this weeks is disappointing in many aspects.
While there is no doubt that Kos has ability to execute whats needed, the board have seriously underminded his very early reputation. The decision to run to the Fortrend line has shown that the board has no confidence in him, and that there is no understanding of the end game.
The boards is either disfunctional or uneducated.

While insiders here will ignore and talk up the company seriously look at whats going on.

Obviously the company needs funds and I'm sure a private placement could have been done.

But the major issue which this company needs to realise is that you will never obtain institutional support for the very reason described above.
The responsibility ESI board,is to make sound decision.
Thats the reason this stock is and will always remain undervalued.

The only other reason I can think of for the move is that the board wants to remove Kos.

The only way we will see who on the board voted for this decision is through the minutes getting them wont be until AGM.
Unless one of the insiders here exposes them.

Many of you who have bought the stock are banking on the de-risking of technology.
QUETION FOR YOU.. who is going to buy the stock up if you all are already long.
As I said institutions arent moving until the above is functioning.
While JVP know the technology works why should they move.
They havent for so long what will change.
ESI is doing a wonderful job of undermining its self.
A bankrupt Esi is a better buy that an operational ESI.

MOU's mean nothing when the right hand has no understanding of the left hand.

What worries me is that we have tried to contact his advisor without success, which indicates something is wrong.

The time has come for Kos to move on his board, or he will be a lame duck.

His advisor needs to be SACKED and put on the board to give it direction, and understand as to what needs to be done.

He has the market know how, to steer the board and is well connected.
Its I think more a case of can Kos convince him.

Currently there are 2 ex-goverment employee's and a former MD who has little understanding of small cap stocks.
While I am not sure who pushed for the Fortrend line to be used it has all the hallmarks of Con.
If this is true then ESI shareholders need to be worried.
As the market disapproved of Con and his methods.
Let's not forget it was at his watch that the stock lost 70% of its value.


Just my 5 cents worth..