eworld Companies, now stock ticker EWRC (after a 12,000-1 reverse split), had investors buying shares today at a rate that slightly exceeded selling of stock. Considering the $126 million offer you would have expected more price appreciation, but with a stock that has sucked so many investors dry it was no surprise to see the upside action suppressed.
The stock opened near prime reverse split levels before a press release hit the wires that is in the running for the most ludicrous Pink Sheet press release of all time.
Before we get started take a look at this chart. Over the last 4 years, if you included all the dilution and reverse splits, a $10 million+ investment would now be worth less than a dollar! You have that right. $10+ million dollars turned into less than a $1 over 4 years. Those are Bernie Madoff type numbers. Shouldn’t their CEO be running the NASDAQ by now?
EWRC today received “A Major Offer” per their press release. That “Major Offer” was to purchase all 6.63 BILLION shares outstanding for $.019 a share. This is all right from the press release that we have posted below. The stock opened at $.0013, yet someone was willing to buy these same $.0013 shares for $.019? And not just a few million shares, they were willing to buy all 6.63 billion of them for a total cost of $126 Million dollars? Does this make any sense at all? Why buy 6.63 billion shares when you can just wait a month for the next 12,000 for 1 reverse split and only have to purchase several million shares? Heck why not buy them on the open market. Check the chart out. There have been shares to buy for years. No reason to scoop them up all at once for 1000 times what they are worth.
The pennystockgurus are stumped at this “major offer”. Even more confounding is why the company has not already accepted the offer. If a CEO of any publicly traded company had to consult with lawyers before accepting an offer that values their “company” at 1000% more than it currently is worth , then they should have his/her head examined and be promptly terminated. Anyone holding shares here should wonder why they aren’t already worth $.019. Maybe they can seek the person(s) behind the “major offer” and sell their shares privately seeing how the market was willing to pay only $.0019 for them at the close today not the $.019 per the press release. You think the company was filling that 700 million share gap today. Couldn’t the perosn behind the “major offer” buy a few billion shares at a 90% discount today to lessen the $126 million purchase price? Then again if your willing to spend $126 million on a $.0019 stock you probably aren’t working with a full deck.
“eWorld CEO Henning Morales has forwarded the offer to the company’s attorneys for review and due diligence.” Due diligence? Review? Someone is willing to pay $126 million for a company whose sole business has been selling shares and performing reverse splits. Take the money and run…. oh wait isn’t that exactly whats going on here?
Who is the one lacking intelligence more? The CEO who wont accept a 1000% premium for a stock that has done nothing but print shares the last 5 years, or the person willing to fork over $126 million for a Pink Sheet stock that has sucked investors dry every day of its existence? Let’s forward that question to our lawyers for further review.
eWorld Companies Receives Major Offer for Purchase of All Outstanding Shares
LOS ANGELES, CA, Sep 09, 2009 (MARKETWIRE via COMTEX) — eWorld Companies, Inc. (PINKSHEETS: EWRC) has received an offer for purchase of all of the company’s outstanding shares for 1.9 cents a share. eWorld CEO Henning Morales has forwarded the offer to the company’s attorneys for review and due diligence, and the shareholders will be kept informed as further information becomes available.
ABOUT EWORLD COMPANIES, INC.
eWorld Companies, Inc. markets and distributes cutting edge Internet technologies through its International network of Affiliates, users and strategic partners. eWorld’s patent-pending Boomerang Media Station(TM) features exclusive and third-party movies, music videos, webcasts and other streaming video content delivered via its unique state-of-the-art high-definition quality video player. Boomerang is a free software program that streams rich media within the actual application and remains ever-present as the user browses the Internet, offering the user one-click access to limitless entertainment experiences and convenience benefits. For more information visit www.eworldcompanies.com or call (310) 471-7674.
Safe Harbor Statement: This release contains forward-looking statements with respect to the results of operations and business of eWorld Companies, Inc., which involves risks and uncertainties. The Company’s actual future results could materially differ from those discussed. The Company intends that such statements about the Company’s future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the “Safe Harbors” provision of the Private Securities Litigation Reform Act of 1995.