Capital Burned: $18.26 million
Previous Executive Compensation: $90,200 annual salary plus $2.3 million in stock awards in 1999
Like every other company that you will see that complains about "naked short selling", Eagletech is another one of those companies that has run their shareholders' equity into the ground while executive suite personnel lined their pockets. Eagletech isn't really a distinctive company in this series. They haven't bothered to prepare and submit an SEC filing in over three years. Their last released balance sheet was for the period ending December 31, 2001 and had all of $1,322 worth of cash on it.
What makes Eagletech especially interesting is an open letter that hit the newswires in early April. This letter, penned by company president and CEO Rodney Young, made quite the production of enumerating the same list of halftruths that all of these companies and their promoters use to divert attention away from their finances. However, what REALLY stood out in Mr. Young's letter was the statement "The law makes no distinction between the counterfeiting of a development stage startup public company and for example, Microsoft Corporation. By the way, while listed in the 'Pink Sheets' in 1975 Microsoft reported three employees and income of $16,000 for the period."
By the way, Mr. Young, Microsoft Corporation was NEVER listed on the Pink Sheets. Microsoft's IPO was done in 1986 and they went directly to the Nasdaq.
One frequent accusation hurled by these parties seeking out the "naked short seller" witch is that these derelict companies are the source of tomorrow's economic growth. They will tell you that the next Microsoft or Dell or Genentech is buried somewhere in the Pink Sheets just waiting to hit the big time if they could only ward off those evil "naked short sellers". What they don't want you to know is that neither Bill Gates nor Michael Dell drew a six figure salary and awarded themselves millions of dollars worth of free stock before they sold their first copy of MS-DOS or their first PC.