A Warning- or An Accurate Description?

Ran across this warning recently:

"[AEHI] is a penny stock company."  "...the market for penny stocks has suffered in recent years from patterns of fraud and abuse. Such patterns include :

• control of the market for the security  by one or a few  broker-dealers  that are often related to the promoter or issuer
• manipulation of prices through prearranged  matching of purchases and sales and false and misleading press releases
• “boiler room” practices  involving  high-pressure sales tactics and unrealistic price projections by  inexperienced sales persons
• excessive and undisclosed bid-ask  differentials and markups by selling broker-dealers
• the wholesale dumping of the same securities by promoters and  broker-dealers after prices have been  manipulated  to a desired level, along with the inevitable collapse of those prices with consequent  investor losses

Gasp!  Say it ain't so!  Tell us happy thoughts, Don!  AEHI ain't a penny stock, is it? These are the words of some rabid anti-nuke-California transplant, aren't they? Don?

Nope.

Those words are right from  page 24 of Alternate Energy Holdings' SEC Form 10-K for the year ended 12/31/2009, filed on March 31, 2010.

But wait- there's more!

Remember AEHI's claim to be "completely above board" and that they "have never missed or been late on a filing"?

And remember the email exchange with "info@aehi.com"?

"The only filings that were late was when we changed attorneys earlier this year and couple form 4s I think were late but in the required quarter we never have we missed an important filing like a 10Q or 10K…that summarize happenings and we use lots of press releases to keep people informed…"

(compare that last part with the second bullet above!)

First, they claim to have "never been late or missed"- when talking to spooky day-traders on the stock-pumping Facebook page, that is.  When talking to a potential investor who has been alerted to challenges to that claim, the company "info" rep (likely Gillispie himself) finally cops to "a couple form 4s I think were late" in a lame attempt to salvage credibility.

What the investor should have done, and what Gillispie should have done, and what the Facebook stock pumping page author should have done, was read AEHI's last 10-K,  pages 36 and 37:

Compliance with Section 16(a) of the Exchange Act
"...the Company has determined that the following Reporting Persons have failed to comply with the Section 16(a) of the Exchange Act on a timely basis:

Donald Gillipsie, president, Chief Executive Officer, Chief Operating Officer and Chairman of the Company, did not file a Form 5 on a timely-basis, with respect to the common shares awarded to him as compensation, and shares distributed to his ex-spouse from a jointly owned account, in the fiscal year ended December 31, 2009.
Gregory E. Kane, Vice President and Director of the Company, did not file a form 5 on a timely-basis, with respect to the common shares awarded to him in the fiscal year ended December 31, 2009.
John Franz, Vice President and Director of the Company, did not file a form 5 on a timely-basis, with respect to the common shares awarded to him in the fiscal year ended December 31, 2009.
Rick J. Bucci, Vice President and Chief Financial Officer of the company, did not file a form 5 on a timely-basis, with respect to the common shares awarded to him as compensation in the fiscal year ended December 31, 2009.
Jennifer Ransom, Senior Vice President and Secretary, did not file a form 5 on a timely-basis, with respect to the common shares awarded to him as compensation in the fiscal year ended December 31, 2009.
Leon Eliason, Director of the Company, did not file a form 5 on a timely-basis, with respect to the common shares awarded to him as compensation in the fiscal year ended December 31, 2009.
Kenneth A. Strahm Sr., Director of the Company, did not file a form 5 on a timely-basis, with respect to the common shares awarded to him as compensation in the fiscal year ended December 31, 2009.
Ralph Beedle, Director of the Company, did not file a form 5 on a timely-basis, with respect to the common shares awarded to him as compensation in the fiscal year ended December 31, 2009.
Mike Sellman, Director of the company, did not file a form 3 when he initially became a Reporting Person of the Company."  [and he still hasn't, according to the SEC filings page for AEHI]

Wow.  So it isn't just some rabid anti-nuke claiming those filings were late.  It was AEHI and its CEO, Don Gillispie who declared those filings late, by signing that 10-K:

 
He can't even remember what's in his own filings.  Or maybe, doesn't want people to know what's in his own filings.


Here's a fun quote from AEHI's own webpage:

"Most companies have Mission Statements, at AEHI we have principles."

Sure you do, Don.

News Flash:  Get your story(ies) straight before you start talking about "principles".
.