Empowernet Share Price Hammered, Unsurprisingly
June 22nd, 2007
This week the Australian Financial Review reported that 80% of the 96 companies which listed on the ASX this year, had their share price go up in the first day of trading.
Empowernet International (ENI.AX) is not one of those companies. In fact, on their first day of listing, their share price went down nearly 50%. Better yet, after a few days, Empowernet went from its list price of 0.55c to around 0.07c. For IPO investors, this signifies an 80% loss on their holdings to date.
If you do not know who Empowernet International is then you’ll see their main revenue stream derives from onselling Anthony Robbins personal development products and merchandise. Key person/company dependency. Check!
Empowernet International doesn’t have a written contract in place guaranteeing exclusivity either. No owned IP. Check!
Results can also be uncertain if their are changes to the marketplace - Few corporate processes or systems in place. Check!
When a company lists it needs to be able to drive by itself with the management team being custodians of the vehicle. If these continuity issues aren’t resolved then the market loses confidence and share prices fall. Incredibly, the one of the directors of Empowernet had the exact same issues when listing Sales Pursuit.
Our advice to Empowernet to get the share price up is a three step process:
- Change the company name to Empowernet Resources International.
- Announce that the company is now actively exploring Western Australia and Queensland for Uranium, Copper, Nickel and Gold.
- Announce that the company was in negotiation to supply China and India with the new found resources.
If they did this, the share price will be hitting $10 or $20 in no time. Virtual miners are big on the ASX at the moment.
June 26th, 2007 at 3:37 pm
Isn’t ENLAX a brand of laxatives??
Why do they keep trying to float??? You’d think they’d at least sort of the exclusivity issue before going for seconds… what is it Tony says??? um…. Notice the results you’re getting… and actually CHANGE your approach. Maybe next time.
Only way to make money there would be to (a) actually learn from your own mistakes (and maybe your own seminars (what a concept?!)); (c) flog the Hollywood rights to the behind-the-scenes corporate do’s & don’t’s documentary; (b) take bets on what the name of their next floater might be.
:)
June 26th, 2007 at 6:22 pm
The old saying “Do what I say, but no as I do” comes to mind.
If they do thedocumentary idea, least they will finally have a product they own the IP for.
By the way, did anyone else notice in the prospectus, that their offices are owned by the Managing Directors and his wife and is being leased back to Empowernet. That same MD has a nice salary of $300k.
I wonder if he gave the company a good deal on the rent.
October 13th, 2007 at 6:22 pm
Those people are horrible… anyone who bought their shares is an idiot… except the directors who got them at 2 cents rather than the 50cents they were trying to sell to shareholders.
They probably called me about 10 times and tried to me to invest into the company… fat chance. When i called them up and tried to complain about their attempt to sell me dud shares, the people who i spoke to were absolutly ignorent of the fact that the share price had fallen 90% in a couple of days.
A word of advice… be very careful when you’re dealing with the company because they will tell you anything short of a lie to get your money… and when they do… you can kiss it good buy.
This time however they have gone too far and it has bit them on the ass. However they deserve everything they get for trying to fool investors and loosing most of their money.
November 23rd, 2007 at 7:35 pm
I think these ENL guys are associated with the notorious Henry Kaye. I attended some of his old seminars and I just see his hand at work in the business model and the materials. The Master Spruiker is back at work, I reckon. ENL is selling over priced properties just the NII used to in the old days. What is surprising is that the dummies are still out there in force….ready to buy overpriced crap. It appears that the value of the properties will perform in the same way as the ENL share price. It must be some kind of record..!!??