3SOF

ILNP(otcbb) - Industrial Enterprises of America Inc

Mkt Cap:                          45M
Outstanding Shares:       56M

Profile:  Industrial Enterprises of America, Inc., headquartered in New York, NY, is an automotive aftermarket supplier that specializes in the sale of anti-freeze, auto fluids, charcoal fluids, and other additives & chemicals. The company has distinct proprietary brands that collectively serve the retail, professional, and discount automotive aftermarket channels.


Fundamentals

ILNP is one of the hottest momentum plays I have ever come across period.  The chart is simply incredible and it is exploding because of this fundamental information:

QuoteIndustrial Enterprises of America Releases Third Quarter Financials
Tuesday May 23, 9:22 am ET
http://biz.yahoo.com/pz/060523/99598.html

[/b]

From the CEO in the above earnings release:
"As an indication of the progress made in the last 18 months, sales have gone from zero to a forecasted $80 million, equity has gone from zero to $6.5 million, and assets have grown to $35 million. Shareholders can anticipate seeing the Company generate $80 Million in revenue in the coming fiscal year and achieve earnings of approximately $0.90 - $1.00 per share on a split-adjusted, fully diluted basis with an application to a major exchange within the next 10 business days."
:o :o :o :o :o :o :o :o

1.  (.90-$1 in earnings) fwd PE at less than 9
2.  ($80million in revenue) Sales almost 2 times mkt cap
3. (to a major exchange in 10 business days) placing a date means these guys are serious

This is an incredible fundamental shift for the company.  The exchange listing is very serious and to complete it the company is set to do a 1:10 reverse stock split on June 5th(monday). This will reduce the amount of outstanding shares to 5.6million and place the price 10 times higher($8.10 at the current price).  For a company that is going to make $1 per share that is a no brainer.. and we want to be a part of the action.. when that float is compressed.   8)

"After reviewing our quarterly numbers with the additions of our acquisitions, this reverse split was the last remaining issue to allow us to qualify for listing on a number of major exchanges. Such a move will further assist us in the development and growth of the company by increasing our exposure and liquidity in the capital markets.''http://biz.yahoo.com/pz/060519/99455.html

Charts

5-year
(http://www.3stocksonfire.org/stockcharts/ILNP%2006-01-2006%20001.JPG)

2-year
(http://www.3stocksonfire.org/stockcharts/ILNP%2006-01-2006%20002.JPG)

6-month
(http://www.3stocksonfire.org/stockcharts/ILNP%2006-01-2006%20003.JPG)

5-minute
(http://www.3stocksonfire.org/stockcharts/ILNP%2006-01-2006%20004.JPG)

Trade Plan

ILNP will be run as a pure momentum play.  A trade like this has multibag potential and we will try to stick with it as long as we can.  The plan is to buy tomorrow morning and see how the market reacts post-split next week.  Even tomorrow it is possible to see big gains but we are holding for what we anticipate to be an explosion next week.  We will talk exits and stops over the weekend.  

We will buy ILNP in the morning on 6/2

Nice to see G here..... ;)

Taken from my post on the penny stock picking board.
http://www.3stocksonfire.org/trading/index.php?topic=5866.0


T/A is pointing at upside resolution of this sideways pattern.

It seems that management wants to do something about the company and get it listed with the big guys. I am not being over optimistic but this company could be on the verge of hitting record highs

This could roll......

John Mazzuto, Chief Executive Officer of Industrial Enterprises of America, commented, "We have been focused on consolidating our manufacturing operations to maximize efficiencies and increase product margins following our acquisitions over the past year. As we have previously stated, we would only consider a reverse split to enable the Company to become listed on a major exchange. After reviewing our quarterly numbers with the additions of our acquisitions, this reverse split was the last remaining issue to allow us to qualify for listing on a number of major exchanges. Such a move will further assist us in the development and growth of the company by increasing our exposure and liquidity in the capital markets."

Technicals
Record Volume
Record Price High
Most Actives
Record Price Break Out
Percentage Gainer

Last Price Quote is:
37.67%above 13-day EMA
50.20%above 50-day EMA

So far, looking very good - about to hit a new high as I type.

I had to edit because I actually read the post and anwsered my own question....

Thank you G for bring this one to the table.

Well, I have to wrap it up for few days for a little trip to mexico, I'll be back in a week but I can't watch my position so I had to let it go.  >:(

In this morning at .72 and out at .82 for a quick 14% profit.  ;D  :D

I hope you guys make lots of cash on this one$$$. See you next week,

adios,
rafael 8)

 :D
Gotta love a close at HOD, nice white hammer after a big tall white, on a down friday!

I would be cautious with this one.

They just signed a deal for financing which will increase the share count by 30,000,000

http://biz.yahoo.com/e/060519/ilnp.ob8-k_a.html

My experience is that on the day a stock reverse-splits, it usually goes down ..

Quote from: eggman11 on June 02, 2006, 04:09:48 PM
I would be cautious with this one.

They just signed a deal for financing which will increase the share count by 30,000,000

http://biz.yahoo.com/e/060519/ilnp.ob8-k_a.html

I may be wrong but I think this already happened and it's factored in to the share count.

This just came out a/h today, new symbol on Monday.

Friday, June 02 2006 4:05 PM, EST

Industrial Enterprises of America Announces New Ticker Symbol -- IEAM
>NEW YORK, June 2, 2006 (PRIMEZONE) -- Industrial Enterprises of America, Inc. (OTCBB:ILNP) today announced that effective Monday, June 5, 2006, the Company will begin trading under the new ticker symbol (OTCBB:IEAM). This ticker symbol was changed by Nasdaq due to the required change of the Company's common stock CUSIP number following the recently announced reverse stock split, also effective on Monday, June 5, 2006.

The new CUSIP number for Industrial Enterprises of America's common stock will be 456132 20 8. Shareholders may exchange their current stock certificates for newly issued shares reflecting the symbol change, new CUSIP number and the post-split adjusted number of shares, but are not required or obligated to do so.

About Industrial Enterprises of America, Inc.

Industrial Enterprises of America, Inc., headquartered in New York, N.Y., is an automotive aftermarket supplier that specializes in the sale of anti-freeze, auto fluids, charcoal fluids, and other additives and chemicals. The company has distinct proprietary brands that collectively serve the retail, professional, and discount automotive aftermarket channels.

CONTACT: Industrial Enterprises of America, Inc.

Investors and Public Relations:

David Zazoff

(212) 505-5976

[email protected]

I recommend that anyone with questions in regards to the company listen to the conference call which occured on May 24, 2006.  It can be found at www.investorcalendar.com.  The CEO John Mazzuto discusses several issues some of which can be found in the press releases.  The call is 25 minutes long.

GLTA....Alien

I don't find any info about the company. They don't have site  ???

Meantime, like G said "pure momentum play" :)

FYI 2 of the 3 companies that ILNP acquired do have web sites. 

Unified Industries (http://www.unifide.com)
Pitt Penn Oil Co.  (http://www.pittpenn.com)

Alien

Thanks Alien

Quote from: gmarc66 on June 02, 2006, 06:41:35 PM
This just came out a/h today, new symbol on Monday.

Friday, June 02 2006 4:05 PM, EST

Industrial Enterprises of America Announces New Ticker Symbol -- IEAM
>NEW YORK, June 2, 2006 (PRIMEZONE) -- Industrial Enterprises of America, Inc. (OTCBB:ILNP) today announced that effective Monday, June 5, 2006, the Company will begin trading under the new ticker symbol (OTCBB:IEAM). This ticker symbol was changed by Nasdaq due to the required change of the Company's common stock CUSIP number following the recently announced reverse stock split, also effective on Monday, June 5, 2006.

The new CUSIP number for Industrial Enterprises of America's common stock will be 456132 20 8. Shareholders may exchange their current stock certificates for newly issued shares reflecting the symbol change, new CUSIP number and the post-split adjusted number of shares, but are not required or obligated to do so.

About Industrial Enterprises of America, Inc.

Industrial Enterprises of America, Inc., headquartered in New York, N.Y., is an automotive aftermarket supplier that specializes in the sale of anti-freeze, auto fluids, charcoal fluids, and other additives and chemicals. The company has distinct proprietary brands that collectively serve the retail, professional, and discount automotive aftermarket channels.

CONTACT: Industrial Enterprises of America, Inc.

Investors and Public Relations:

David Zazoff

(212) 505-5976

[email protected]

Thank you for the news link Julia  :)... a 4 letter symbol change.. hmm that might mean they are going for a nasdaq listing?  That might be great news!  :o

Quote from: alien41 on June 04, 2006, 09:56:25 AM
FYI 2 of the 3 companies that ILNP acquired do have web sites. 

Unified Industries (http://www.unifide.com)
Pitt Penn Oil Co.  (http://www.pittpenn.com)

Alien

Thx for the links Alien.  ;)

--------------------------------------

update ILNP:

We had a great day on Friday!  With price retreating early for our buy and then climbing strong to close the day at the high on great volume... This week could be huge for ILNP.  The reverse-split will become active and new symbol IEAM will take effect.  This momentum should run hard into the anticipated exchange listing.. the chart is clear for a dramatic rise so we wont limit this with a target at this time.

------
Position: bought ILNP @ 0.75 on 06/02/2006
Order: Hold
Exit: n/a
Target: n/a
------

Can't trade this one  ???

May be the split is a reason .

Quote from: voova99 on June 05, 2006, 12:46:09 PM
Can't trade this one  ???

May be the split is a reason .

It could be due to the split and the name change.  The stock is definately tradeable but it seems some others are having this issue as well(lower volume).. Check with your broker and make sure they set you up!

The stock is performing nicely after this split and name change up +7%  ;)

My broker(Scottrade) told me that my shares will not be available untill Wednesday.  :-\  This is definitly a bummer as I would have loved to made a trade today.  IEAM seems to be holding up well so I'm hoping I will not have missed out.  ::)

GLTA....Alien

My broker (ameritrade) said my shares are tradable Tuesday.

update IEAM(ILNP):

IEAM had its reverse split(1:10) and name change(from ILNP) today.  The stock opened up and some traders found they were unable to trade the stock because their brokerages were not up to speed.  We will see how this affects the stock.  Now we await the announcement of an exchange listing.  The stock finished higher and did get above average volume..but we did see some selling pressure.  Lets see what we get tomorrow.  ;)

------
Position: bought IEAM @ 7.50 on 06/02/2006
Order: Hold
Exit: n/a
Target: n/a
------

I was really  :o shocked :o for a second this morning to look at my account balance on etrade and see I was down something like $8000!!! Good thing I dont have a heart condition... they just show the old symbol and its basically valued at zero in my account... really kind of kludgy, would be intrested to know how it looks for those of you with Ameritrade, etc.

For Scottrade atleast I know you can still trade over the phone [in cases like this] and the only thing that goes with it is that they warn you about the change in symbol stuff. I had the same experience with GTE. So forget about trading on Wed, just check with your local Scottrade branch over there current policy and fees.
Goodluck all.

My Ameritrade balance shows the original entry price and shares held but no updated balance relative to the change.

At ameritrade the symbol dissapeared....its written N/A

I called and talked with Ameritrade - until your trade settles you may not trade the stock online, but you can make broker assisted trades until then.  Since most of us bought on 06/02/06 the trade settles on 06/07/06 making it tradable on 06/08/06 over the internet.

Not in this one but have been through a couple reverse splits.

I have etrade and also have had the problem of not being able to trade for several days after a split. Frustrating if the stock goes down which is usually the case. The saving grace as far as etrade is concerned is that if you already have a stop in place it will still reflect the change in pps and will still trigger if stop is reached.

I also get a 20$ reorganization fee- in my opinion it is not worth holding through a reverse split.

I use Interactive Brokers and I have not had absolutelly any problem with trading of IEAM! It holds the price nicely so far. I hope they will announce the listing within 10 days as promised!! Great pick so far!!!

According to John Mazzuto, CEO of IEAM he stated on a May 23 press release that:

Shareholders can anticipate seeing the company generate $80 miliion in revenue in the coming fiscal year and achieve earnings of approximately .90-1.00 per share on a split-adjusted, fully diluted basis with an application to a major exchange with in ten business days.  As I see it an application should be submitted by tommorrow. 

I was wondering do they announce when the application has been submitted or only after it has been approved?  I was also curious how long it takes to get approval once it has been submitted?  I would appreciate any information some one might have on the approval process.

Thanks in advance.....Alien

Quote from: boatguy on June 06, 2006, 09:16:06 AM
Not in this one but have been through a couple reverse splits.

I have etrade and also have had the problem of not being able to trade for several days after a split. Frustrating if the stock goes down which is usually the case. The saving grace as far as etrade is concerned is that if you already have a stop in place it will still reflect the change in pps and will still trigger if stop is reached.

I also get a 20$ reorganization fee- in my opinion it is not worth holding through a reverse split.

It s the first and last time i stayed in a reverse split (3 days settlement= not tradeable) too risky...

Industrial Enterprises of America, Inc. (OTCBB: IEAM) headquartered in New York, N.Y., is an automotive aftermarket supplier that specializes in the sale of anti-freeze, auto fluids, charcoal fluids, and other additives and chemicals. The company has distinct proprietary brands that collectively serve the retail, professional, and discount automotive aftermarket channels.
With 562,300 shares outstanding and an undisclosed short position, there is a failure to deliver in shares of IEAM.

http://www.knobias.com/individual/public/news.htm?eid=3.1.5708993ce7cab1b54dd9bf675477867c41fdd84403da7a03888d1d3961ddb0aa

any comments on this ?

posted financials this mornig..
I'm not too sure if the numbers are a good thing....
Pls advise...
http://finance.yahoo.com/q/h?s=IEAM.OB

so far trading a little down...
Cheers
B

Quote from: Loffigus on June 06, 2006, 09:10:38 AM
I called and talked with Ameritrade - until your trade settles you may not trade the stock online, but you can make broker assisted trades until then.  Since most of us bought on 06/02/06 the trade settles on 06/07/06 making it tradable on 06/08/06 over the internet.

Thanks for this post Loffigus...i called ameritrade......my broker sold it  for 8.30 this am....had 20min of talking, waiting to get everything right..puuh..in this nervous market i take my gains fast....in 7.40 out 8.30 = 12% gain :)

I believe the financial numbers that people are counting on are the numbers that are projected for this fiscal year, which I believe starts July 1, 2006.  I think that this information was already posted on the ILNP board before there was a switch.

Alien

I find it fascinating to watch how stock brokers handle these stock splits and name changes. Ameritrade, this very moment, shows the quantity of IEAM as 1/5 of the shares of ILNP I bought on June 2.

With all the computers they have you'd think they could do it instantly, and in one go. Perhaps they would be faster and more accurate if they used an abacus.

A little something about the CEO of IEAM

Take John Mazzuto for example. When we met in December, he had all the ingredients for success. A profitable company, big dreams, small o/s, low float, top notch management, and integrity. But alas, he suffered from a problem that plagues most micro and small cap CEO's, Wall Street didn't know he existed. Even worse, few retail investors even knew he existed.

His business plan wasn't sexy, he had no corporate art collection, and he refused to pay to be listed in the latest edition of Who's Who, the business world's literary response to the WWF. What he did have was passion, drive, integrity (as previously mentioned), and heart... lots of heart. He also had an IR guy, David Zazoff, who impressed me by the complete lack of smoke he blew up my chimney.

update IEAM(ILNP):

IEAM has pulled back but remains above our buy point and support.  We expect some news released shortly about the exchange listing.  This could provide some momentum to the upside shortly.

------
Position: bought IEAM @ 7.50 on 06/02/2006
Order: Hold
Exit: n/a
Target: n/a
------

Boy, when the bulls return they come in a frenzy. >:D

I bet this rise is in anticipation of the news release for exchange listing...
Could start to get interesting now...

insider buying:
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=4226524

Quote from: la-onda on June 15, 2006, 02:41:44 PM
insider buying:
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=4226524

great news Oliver  ;)

-------------------------------

update IEAM(ILNP):

IEAM had a very strong move today.. both price and volume were powerful.  The stock had news of insider buying by the CEO.  Sometimes insiders follow each other so lets see if more jump in.. of course we are awaiting an update on the exchange listing.  ;)

------
Position: bought IEAM @ 7.50 on 06/02/2006
Order: Hold
Exit: n/a
Target: n/a
------

Hi G.,
wrong chart attached  ??? ;D

news update:
ndustrial Enterprises of America to Acquire Regional Automotive Products Manufacturer
Monday , June 19, 2006 08:44 ET

NEW YORK, Jun 19, 2006 (PRIMEZONE via COMTEX) -- Industrial Enterprises of America, Inc. (OTCBB:IEAM) today announced that it has signed a Letter of Intent to acquire a well-established automotive aftermarket filler and supplier. The acquisition target is a profitable specialty blender, packager and distributor of motor and lube oils and related automotive aftermarket products based in the Southeastern United States. The acquisition, anticipated to close within 60 days, will effectively double Industrial Enterprises' geographical presence in an adjoining market to those presently serviced by existing operations.

John Mazzuto, Chief Executive Officer of Industrial Enterprises of America, stated, "This acquisition allows us to enter the Southeast market immediately and leverage our existing infrastructure while providing additional capacity for future growth. Upon closing, this acquisition will significantly increase the regional scope of our private label manufacturing, oil packaging and shipping operations. Based on the sales results of the first 90 days of the combination of the Pitt Penn and Unifide sales forces, we will need the additional capacity within the next 12 months. This regional combination will immediately increase our manufacturing capacity, national distribution, and purchasing power while growing revenues and net income by at least 20 percent during our 2007 Fiscal Year which begins on July 1, 2006. The funds for the acquisition will come from our existing resources without increasing the number of fully diluted shares."

The last three days arent exactly dojis, but otherwise this is basically a tri star reversal pattern.

When is the news supposed to come out again?  These candles make me a bit nervous.  Of course, the last month has made me gun shy in general, so dont mind me! :P

Application to Nasdaq confirmation news release.

NEW YORK, June 26, 2006 (PRIMEZONE) -- Industrial Enterprises of America, Inc.
(OTCBB:IEAM) today announced that the Company has filed an application to become
listed on the NASDAQ Capital Market. During the application review process,
Industrial Enterprises of America's stock will continue to trade on the Over the
Counter Bulletin Board pending NASDAQ's approval. 
In May of this year, management approved a one-for-ten reverse stock split to
increase the Company's visibility within the financial markets and position the
Company's stock to fulfill requirements necessary to trade on the NASDAQ
exchange. 
"Becoming listed on the NASDAQ is the next logical step for our company which
is experiencing rapid growth. The consolidation of our sales forces is on track
and we are well on our way to establishing ourselves as a large player in the
U.S. automotive aftermarket," stated John Mazzuto, Chief Executive Officer of
Industrial Enterprises of America. 
"Additionally, the Company has recently received a large contract for packaging
which will increase Pitt Penn's current unit output by 20%. This order, when
combined with the organic growth already being experienced of over 25%, will
further utilize current excess capacity at the plant and have a substantial
positive impact on profit margins," continued Mazzuto. 
Industrial Enterprises of America, Inc. is an automotive aftermarket supplier
that specializes in the sale of anti-freeze, auto fluids, and other automotive
additives & chemicals. The company has distinct proprietary brands that
collectively serve the retail, professional, and discount automotive aftermarket
channels. 

Quote from: AussieTrader on June 26, 2006, 09:56:55 AM
Application to Nasdaq confirmation news release.
http://biz.yahoo.com/pz/060626/101255.html

Great to hear this news finally.

-------------------------------

update IEAM(ILNP):

IEAM did not react to the news of Nasdaq application.. in fact volume has been decreasing since the reverse split.  This is ok since the price movement has been horizontal.  We will continue to hold.

------
Position: bought IEAM @ 7.50 on 06/02/2006
Order: Hold
Exit: n/a
Target: n/a
------

update IEAM(ILNP):

------
Position: bought IEAM @ 7.50 on 06/02/2006
Order: Hold
Exit: n/a
Target: n/a
------

update IEAM(ILNP):

------
Position: bought IEAM @ 7.50 on 06/02/2006
Order: Hold
Exit: n/a
Target: n/a
------

update IEAM(ILNP):

Great news for IEAM today!  ;)

QuoteIndustrial Enterprises of America Provides Update Regarding Pending Acquisition
Monday July 10, 9:26 am ET
http://biz.yahoo.com/pz/060710/101836.html

NEW YORK, July 10, 2006 (PRIMEZONE) -- Industrial Enterprises of America, Inc. (OTC BB:IEAM.OB - News), a specialty automotive aftermarket supplier, today announced that due diligence regarding its previously announced acquisition target is ongoing and the Company anticipates entering into a definitive agreement with a closing scheduled on or about July 31, 2006.

John Mazzuto, Chief Executive Officer of Industrial Enterprises of America, stated, ``Based on initial analysis this accretive acquisition, upon completion, will immediately increase our manufacturing capacity and regional distribution, growing revenues and net income during our current fiscal year. I want to reiterate that the funds for this acquisition will come from our existing capital resources without increasing the number of free trading shares or the absolute number of fully diluted shares outstanding. Subject to the consummation of the acquisition, the new earnings guidance will be $1.20 per share on a fully diluted basis.''

The acquisition target is a profitable specialty blender, packager and distributor of motor oils and related automotive aftermarket products based in the Southeastern United States with projected revenue of approximately $20 million. The purchase price of the acquisition will be based upon its current year earnings and will be on par with valuation given to previous acquisitions....

[/b]

Earnings of 1.20! = fwd PE of 6.2... IEAM has room to grow.

Look at that chart! - a great bounce off the 50ma.

------
Position: bought IEAM @ 7.50 on 06/02/2006
Order: Hold
Exit: n/a
Target: n/a
------

update IEAM(ILNP):

------
Position: bought IEAM @ 7.50 on 06/02/2006
Order: Hold
Exit: n/a
Target: n/a
------

update IEAM(ILNP):

This undervalued stock is consolidating nicely.  Should be trading on the Nasdaq soon.  Lets see if we get a bounce off of the 50ma.  ;)

------
Position: bought IEAM @ 7.50 on 06/02/2006
Order: Hold
Exit: n/a
Target: n/a
------

IEAM is touching the MM50 in a very bearish mode for me....seems that is going to break the triangle at the downside
Hope I'm wrong

I have been accumulating at these low prices in the 6.60 range. I am expecting  some upward movement soon in anticipation of both the new acquisition and the move to the  NASDAQ.

It has been holding up quite well in the recent volatile market. We shall see!

closed over the ema 9...i expect a move up soon

Last hour (after 3 AM) is very nice.
Hope, we will see something interesting in the nearest future.  ;) IMHO

...added a bit more today...still above 13ema...bollinger bands getting tight, also above the 38% fibonacci retracement (starting from 7/27-doji).  Looks to me to have started a TL2 from 8/7, too.

Now all we need is volume!  JMHO, do you're own DD.  Comments welcome.

Update:
Despite the low volume from recent sessions, IEAM is performing a bullish overall pattern on its short term chart. Since its first correctional move in early June, IEAM is achieving consecutive lower lows, and support was found near $6.5 / $6.7, its previous resistance area.

Trading Plan:
Hold IEAM

You just get that feeling this stock is going to lift off. I am in this puppy for the long haul. NASDAQ listing on the way, 1.20 earnings estimates for 2007, with an acquisition adding 20 million a year to revenues with no increase tp outstanding shares.  Buy and be paitent with this puppy... Postive money flow into this stock. With the low float when this holding begins to move it will be in nice chunks.

CSK Auto Corp. which is in the same space  operates as a specialty retailer of automotive aftermarket parts and accessories in the United States, has eps of .65 and supporting a pe of 18.35 for a nice price at 11.47 on 8-31-06. We get that p/e with 1.20 comes to a target of 21.60. Now that makes for a nice return. Add to that the acquisition and watch out.

I apologize for getting a little excited.

We shall see!!!

aitech61 , I have similar expectations on this one...

Unless some crazy price move force us to change our plans, we're holding IEAM and looking north ;)

Regards,

For when the listing at Nasdaq for this baby?

Quote from: Dracull on September 01, 2006, 04:35:06 AM
For when the listing at Nasdaq for this baby?

Hi Dracull,
There is no date yet, but after listening to the full Press Conference from last September 7th, they talk about that: «(...)we are still replying to questions and waiting replies, but (...) we expect that (be listed on the Nasdaq) to be accomplished in the next 6 weeks or so...». A few more interesting things about their guidance, like they are expecting to get $100M in revenues can be heard there. You can listen to the full 26 minutes of the Press Conference here: http://www.wsw.com/webcast/roth8/ieam/ (on 20m27s is where they talk about the listing).

Update:
IEAM is still performing a consolidation pattern, the ascending support line has been working, resistance should be now near $7.70, we'll be holding IEAM for now and wait for developments.

Trading Plan:
Hold IEAM

I took a starter position of 1,000 shares at 7.19 today, based on preliminary dd and listening to the Sept. 6/7 conference.  Notice the increased volume immediately after the conference.  Smart money liked with they heard; so did I. 

TA tells me IEAM is ready to run here in the next couple of weeks. 

From IR today:

- IEAM to file 4Q (year end) results w/ SEC on Sept. 30;
- NASDAQ listing in process and the assumption is that NASDAQ will allow the listing soon (within a month) after IEAM files the aforementioned results;
- pending acquisition is in process, IEAM decided to do Phase III soil testing of oil handling facility and the soil is in the environmental consultant's hands;
- there are a lot of institutional investors that have not filed disclosures yet (i.e., new institutional investors);
- insider selling (from awhile back) was because the seller bought a new house and needed cash for closing.  all other insiders' shares are locked up;
- expect a press conference within the next 2 weeks from a major gasoline company about IEAM selling products under the gas company's brand (very famous brand) nationwide.

Financials.

http://finance.yahoo.com/q/is?s=ieam.ob

I'm wondering if there will be a "shake out" like I've fallen for too many times.


GLTA

Not a very good table that of IEAM's......I'm holding IEAM just to see if there is some shake-up after it goes to Nasdaq

This news causing some sell off:

NEW YORK, Sept. 22, 2006 (PRIMEZONE) -- Industrial Enterprises of America, Inc.
(OTCBB:IEAM) responds to the 13D filing by Mr. Beryl Zyskind and disputes Mr.
Zyskind's entitlement to any shares as alleged in his filing. 
The Company feels very strongly that the filing by Mr. Zyskind is false and
misleading. While the Company is currently in litigation regarding Mr. Zyskind's
claims, the amount of shares claimed to be beneficially owned by Mr. Zyskind is
outrageous and erroneous. The Company has numerous defenses to Mr. Zyskind's
claims including, but not limited to:   


1. An executed release that states, "The parties hereto warrant
    that this Mutual Release is to be of the broadest nature and is to
    be dispositive of all matters between the parties hereto."
2. That the $100,000 in question was not invested for the benefit
    of the Company and
3. That Mr. Zyskind has already received appropriate compensation
    for his claims.

Management believes the timing of Mr. Zyskind's Schedule 13D filing
demonstrates that it was not done for the purpose of complying with the
securities law, but for the purpose of abusing the securities laws as a weapon
for gaining unfair advantage in his civil litigation. The Company has contacted
the Enforcement Division of the Securities and Exchange Commission regarding
this abuse of the securities law and is considering all of its legal options at
this time. The Company will also be commencing legal action to redress any
potential harm to its shareholders. 

I added on the dip. The stock showed strength in coming back. Someone is in the know...


I added in the hopes of a bounce. The fundamentals are still the same. I was willing to take the risk. So far so good!!!!

We shall see!

Financials... :-\

http://finance.yahoo.com/q/is?s=ieam.ob

Those numbers do not include Pit Penn, which is the reason why people are excited.  Wait until fiscal year end numbers are released (Friday?).

Per yesterday's presentation:

last 6 mths, rev growing 20% per month, coumpounded
capacity is $200mm rev.
on pace now for $100mm rev, this fy
customers now include k-mart, wal-mart
Inst. investors now include Nite Capital, among others
net income to double next 2-3 years w/out dilution
still guiding $1.20 / share net income fy07 (ends june 30, 2007)

Q4 NI= $0.20 / share

http://biz.yahoo.com/pz/060929/106003.html

Any reason for the low volume?  What does everyone think of the latest numbers?  What is the status of the Nasdaq listing?  An update please.

Low volume because of a low number of outstanding shares; latest numbers are awesome, Nasdaq listing will follow about a month after Q4 numbers are filed with SEC. 

See also my post from Sept. 18th.

Symbol was changed today by mistake by nasdaq to ieame, will go back to IEAM tomorrow.
Good chance to get back in today.

IEAM's 10K is tardy. 

They filed and extension, nasdaq misplaced it hense symbol change.
IR told me it will be corrected tomorrow.

Any update Micheal? 

Ramsburg thank you for the notice prior to selling PTSC.  I especially like the way Micheal (with one of his VERY rare inputs) says "As always Pennies are risky investments but I feel good about this one" and "The earnings were good, the potential is mind bubbling and to get the restatement of 2005 out of the way should be good news" just before market close.  Only to find out later that 3SOF sold earlier that morning. 

I would also like to thank you for the weekly updates on IEAM.  The stock has been held for over 4 months, is down 14%, and hasn't been updated by a paid administrator since September 10th.  Even after several request for an update.

I will give you credit for some nice picks recently but I also paid for the knowledge, technical analysis, and daily updates from Micheal and EliteG. 

Hello bmarc4211,

I dont understand whats the issue on PTSCE ? the instructions were «PTSCE.OB - (half position) HOLD (suggested stop price near $0.90)», the other half was already sold last week at $1.10.
The stock reached a low of 0.89 yesterday morning, and I sold the 3SOF position few hours later while the stock was trading .93/.94 with low volume.

About IEAM, tonight we'll post an update about it.

Update:
IEAM has been trading with very low volume, showing no special technical signs for the past weeks. The $6.50 area is working as a support and bottom of IEAMs current price range, the company is late on its fillings but the stock is somehow holding with not much damage in price.

We'll keep holding this position while it manages to trade above $6.50.

Trading Plan:
Hold IEAM with a suggested stop at $6.30


Regards,

From IR today:

Company is aware that its failure to file its 10K on time is hurting the stock as well as delaying the NASDAQ registration process.  However, the 10K should be filed by Monday.

The big block today (330K+ shares) was a New York hedge fund buying from another institutional investor.  The hedge fund plans to buy an addition 150K or so shares on the open market. 

Company is having an meeting of analysts at Pitt Penn in the next couple of weeks.

There is some conference happening in Las Vegas in the next couple of weeks, where the Company will announce a new line of chemical products under a well known oil/gas company brand name.

Company is presenting in November.  See http://pacgrow.com/Conference/presenting_companies.html

Personally, I beginning to doubt this Company and this stock.  I am putting IEAM on a very short leash.  IEAM is following the track of other "pump and dump" BB stocks; all "plans" and "presentations" with no results.

Buddjas1, how short of a leash?  Ramsburg's stop at 6.30 seems about right to me. 

My leash is dependent upon Company actions not share price.

If IEAM does not file the 10K by close of business Monday, then I will sell.
IEAM has already blown through two (and, tomorrow, three) self-imposed deadlines for the 10K.

Update:
IEAME had another positive reaction on the support level. Volume increased a bit in the last sessions, but there is no news yet :(
The last few candles along with volume are suggesting upside continuation, we expect this to be the move we've been waiting for; otherwise we may just drop this position out of the 3SOF Portfolio.

Trading Plan:
Hold IEAM with a suggested stop at $6.30

Regards,

Update:
IEAME is finally showing some bullish developments on the TA front. Volume is slowly increasing, and the stock is now testing the descending resistance line.
We don't have any news yet, but the chart is asking for a breakout... lets wait a bit more.

Trading Plan:
Hold IEAM with a suggested stop at $6.30

Regards,

Update:
Interesting development here, IEAME just had a breakout. We are not setting a sell price yet, but this chart setup suggests short term upside continuation.

Trading Plan:
Hold IEAM with a suggested stop at $6.30

Regards,

Update:
The breakout was solid, and now we have IEAME trading near the target for this breakout, which would be about $9.00.
We are not waiting any longer, and we'll sell this position today, although we are not giving any specific price instruction here, and the trading plan is just:

Trading Plan:
SELL IEAM today

Regards,

I do not follow the strategy, here.  Why wait 3 months for this minimal gain?  I see the breakout from the TA point of view, but 3SOF bought IEAM as much for its fundamentals ($1.20 / share projected NI '07). 

With the Nasdaq listing coming in the next month or so and the increased institutional buying that will follow as a consequence, IEAM has nowhere to go but up.

IEAM should see $10+ in the very near future. 

3SOF appears to be missing an opportunity here.

I think it's a good idea to lock in profits in this unpredictable and volatile market.  I would bet the stock will retrace before see's $10. 

I was glad to get out with a small profit as it was tying up funds that could have been more profitable.

GLTA...Jody

Quote from: buddjas1 on November 10, 2006, 03:42:35 PM
I do not follow the strategy, here.  Why wait 3 months for this minimal gain?  I see the breakout from the TA point of view, but 3SOF bought IEAM as much for its fundamentals ($1.20 / share projected NI '07). 

With the Nasdaq listing coming in the next month or so and the increased institutional buying that will follow as a consequence, IEAM has nowhere to go but up.

IEAM should see $10+ in the very near future. 

3SOF appears to be missing an opportunity here.

Hi buddjas1,

I respect your opinion about this trade, but let me clarify some of the reasons why we have recently sold IEAM accepting just a «small» profit here:

- IEAM, was picked for the 3SOF portfolio somewhere in June, one of the reasons why we were expecting a good performance on this trade was exactly: «Nasdaq listing coming in the next month or so» (back in June)
- Since June, the company has not released much information regarding that Nasdaq Listing, and several other important information...
- IEAM was supposed to be a quick short term trade, but in fact, the stock was already inside our portfolio for 5 months (our record time holding).
- This position was originally picked by EliteG, who has therefore left the 3SOF trading team, so this position came to my «guard», at that time already showing a «small» loss.
- IEAM is a low volume stock, therefore we had some liquidity issues for this position on our portfolio.
- With IEAM going up recently, and volume increasing to moderate levels, I was «relived» of some pressure on this trade.

To be honest, I have a neutral opinion about IEAM, I hope it goes up, and I wish the best to anyone holding this stock. The technicals are good and improving right now, if that Nasdaq listing really happens, you may be right about $10 or more, but holding it just because of this, is not part of our current strategy at 3SOF.

Best Regards,

any ideas for what happened after the release of financial results in the last two days!??!??! I am thinking about buying this one. Do they still adhere to their NI guidence for fiscal year 2007?

This stock has just been pummeled over the last few days. Hope no one here is holding. :(

Dropped the "E" and is seeing a gain today.   Looks like a nice opportunity for a little bounce action.

insiders buying at $3-$5 range. Could be a good opportunity to load at low $3s

Quote from: rspisek on December 06, 2006, 10:28:53 PM
insiders buying at $3-$5 range. Could be a good opportunity to load at low $3s

forgot link: http://www.secform4.com/insider-trading/1059677.htm

Quote from: rspisek on December 06, 2006, 10:28:53 PM
insiders buying at $3-$5 range. Could be a good opportunity to load at low $3s

thanks ;)

bounce triggered we broke day high 3.33  >:D

let´s play the rebound game
I am in  >:D

I'm in this one as well. Good luck.

:)

I have listen to the updated CC (incl Q&A) and in my opinion IEAM should trade much higher!

Form 10QSB/A for INDUSTRIAL ENTERPRISES OF AMERICA, INC.
6-Dec-2006
Quarterly Report

Item 2. Management's Discussion and Analysis or Plan of Operations.

Three Months Ended September 30, 2006 as Compared to Three Months Ended September 30, 2005

Revenues from sales of products for the three months ending September 30, 2006 were $10,035,386 as compared to $4,909,803 for the same period in 2005. The 2006 amount reflects the additional revenue derived from the addition of Pitt Penn's operations. The other revenues for the Company during the quarter are attributable to the Company's on-going plan to pay consolidation expenses by realizing value on assets that are undervalued on the financials of the Company. For the three months ended September 30, 2006 these other revenues were $2,420,739 as compared to $0 for the same period in 2005.

Total operating expenses for the three months ending September 30, 2006 were $2,375,708, as compared to $1,671,418 in the same period of 2005. Of the 2006 amount, $1,819,368 was due to the operations of EMC, Unifide, Todays Way and Pitt Penn and the balance was due to the Company's corporate expenses. The additional expenses for the quarter reflect the expenses from the operations of Pitt Penn which were not present at the same period in 2005.

Interest expense in the first fiscal quarter of 2006 amounted to $1,829,868, as compared to $599,981 during the same three month period of 2005. The difference is attributable to the Company's treatment of its convertible debt with attached warrants as a derivative security and the money raised to purchase Pitt Penn.

The result of the above was a net gain for the three months ending September 30, 2006 of $985,771, compared to a net loss of $(852,790) for the three months ending September 30, 2005.

Liquidity and Capital Resources

Net cash from operations for the three months ending September 30, 2006 was $985,771, as compared to net loss of $(852,790) provided by operations for the three months ending September 30, 2005. This increase was attributable to the consolidation efforts of the Company with the addition of Pitt Penn and the on-going efforts by the Company to extract value out of assets that are on the books of the Company at well below market values.

Net cash (used) by investing activities was $(1,508,870) in the three months ending September 30, 2006 as compared to $(2,174,629) for the three months ending September 30, 2005.

Net cash (used) by operating activities for the three months ending September 30, 2006 was $(947,180), compared to cash used by operating activities for the three months ending September 30, 2005 of $(161,655).

Net cash provided by financing activities was $2,295,389 in the three months ending September 30, 2006 as compared to $2,777,257 for the three months ending September 30, 2005.

Quote from: la-onda on December 07, 2006, 05:43:48 PM
I have listen to the updated CC (incl Q&A) and in my opinion IEAM should trade much higher!

It should and it will!!!  >:D

here we go  >:D >:D

la-onda we are on fire....watch out when we break 3.60 today or monday....not much resistence afterwards

wow  :o :o >:D >:D

hi ket1390,
nice trade so far, have a nice weekend
cheers
Oliver

Industrial Enterprises of America Announces New Independent Auditor
Friday December 8, 3:59 pm ET

NEW YORK, Dec. 8, 2006 (PRIME NEWSWIRE) -- Industrial Enterprises of America, Inc. (OTC BB:IEAM.OB - News), a specialty automotive aftermarket supplier, today announced that the Company has retained De Joya Griffith & Company, LLC as the Company's independent auditors, effective immediately.

De Joya Griffith & Company, LLC will be replacing Beckstead and Watts, LLP (B&W) as Industrial Enterprises of America's independent auditors. B&W's report on the financial statements with respect to the fiscal years ended June 30, 2005 and 2006 contained no adverse opinion. There have been no disagreements with any of the Company's independent auditors to the knowledge of the Company's Board of Directors.

Additional information relating to the change in the Company's independent auditors can be found in a Current Report on Form 8-K which the Company is filing today with the Securities and Exchange Commission.

I will be buying a nice chunk on Monday.  The new auditor restores my faith in the company to file timely the 10s with the SEC.  All they need now is to dump the IR firm, which I think will happen.

yes!!! As expected but it makes me very happy anyway $10.000!!!!!

 :)

Got in today at about $4.00.  Looking good; would like to see above 4.50 today.

Breaking out again.  Here is why:

http://biz.yahoo.com/pz/061211/110226.html

$10 million share repurchase program.

 >:D

Trading range getting pretty tight, here.  Symmetrical triangle about to close.  Could see the next leg up start before the end of the day.

update:

1)
Industrial Enterprises of America Forms Joint Venture With Sinochem Ningbo Ltd.
Monday December 18, 11:53 am ET

NEW YORK, Dec. 18, 2006 (PRIME NEWSWIRE) -- Industrial Enterprises of America, Inc. (OTC BB:IEAM.OB - News), a specialty automotive aftermarket supplier, today announced that the Company has entered into a Joint Venture agreement with Sinochem Ningbo Ltd., a subsidiary of Sinochem Corporation, for the packaging of refrigerant gases in China for worldwide distribution. Sinochem Corporation is China's largest chemicals trader and a Global 500 Company.
Per the agreement, IEAM will provide packaging equipment and expertise as well as train the staff for the facility which will be provided by Sinochem. Profits from the venture will be effectively equally split between the two parties.
Industrial Enterprises anticipates that the Joint Venture will begin operations early next year, with a full transfer of equipment and trained personnel between IEAM and Sinochem's facilities to be complete by the end of March.
John Mazzuto, Chief Executive Officer of Industrial Enterprises of America, commented, ``This new venture has the potential to increase the earnings of our company dramatically as this facility will be shipping worldwide. We expect this Joint Venture to be a strong profit center for IEAM for many years to come. Although it is premature to forecast earnings for the new venture, I would expect it to have at least the same impact as the acquisition of Pitt Penn.''
Sinochem Ningbo Ltd. was established in 1987 and is a subsidiary of China National Chemicals Import & Export Corporation (SINOCHEM), which ranked 276th among the top 500 enterprises in the world.

ket & buddjas1, you are still invested?
cheers
Oliver

Sold near 5 last week.  I get the impression that someone is converting warrants at 5 and holding IEAM down.  I will give IEAM another look after it breaks through 5.

I retook a small position last week today at $4.17.  It is now 5.25 and climbing.  The company's share repurchase program is taking warrants out the system, which is helping.  News of NASDAQ listing has to happen here sooner than later.  I will keep adding early next week. 

Financials-

I usually make a table here.  However, it does not make sense for IEAM, right now.  The company is still working to incorporate its main revenue source PittPenn and is restructuring that component. 

The most recent 10Q for Q207, on the surface, was unimpressive, as David pointed out in his most recent analysis:
Rev - $16,981,153                    (vs. $ 10,035,386 Q107)
Op Income - $2,257,193           (vs. $ 345,595   Q107)
Net Income - ($1,810,891)
EPS - ($0.19)
Shares - 13,900,000

However, net income was skewed by ($4,096,012) "in non-cash expenses associated with the company's convertible securities and warrants. The conversion of over 50% of the convertible notes and exercise of warrants resulted in an accelerated charge to income of the valuation of such securities added to the balance sheet arising from their issuance."

Knock out the conversion non-cash expenses, "real" EPS was $2,285,120 or $0.164 per share.

http://www.sec.gov/Archives/edgar/data/1059677/000135471707000017/press.htm
http://www.sec.gov/Archives/edgar/data/1059677/000135471706000102/f10qsb.htm

Guidance -

Growth, growth, growth:

"For the third fiscal quarter, Industrial Enterprises estimates revenue of approximately $25 million, with EBITDA per share of $0.32-$0.34. For the fourth fiscal quarter, the company estimates revenue of approximately $30 million, with EBITDA per share of $0.50-$0.52. For fiscal year 2007, Industrial Enterprises estimates total revenue of approximately $80 million, with EBITDA per share of $1.22-$1.24 including the first quarter's $2.4 million income from asset sales. EBITDA per share is calculated using the current fully diluted share count, including treasury method, of 13.9 million shares. "

http://www.sec.gov/Archives/edgar/data/1059677/000135471707000017/press.htm

Anti-dilution Program-

Rather than dilute, like most BB stocks, IEAM has implemented a $10,000,000 share repurchase program.  As of February 16, 950,000 shares were repurchased.  The program will be completed by Sept. 2007.

http://www.sec.gov/Archives/edgar/data/1059677/000135471707000017/press.htm
http://www.sec.gov/Archives/edgar/data/1059677/000135471707000002/press.htm
http://www.sec.gov/Archives/edgar/data/1059677/000135471706000108/press.htm

Institional Purchases-
This is crazy for a BB.

March 16, 2007 - 800,000 shares

http://www.sec.gov/Archives/edgar/data/1059677/000089843207000285/alydar13g.txt

March 21-22, 2007 - 245,000 shares

http://www.sec.gov/Archives/edgar/data/1059677/000101359407000196/xslF345X02/industrialfm4-032307_ex.xml

March 19, 2007 - 10,380 shares

http://www.sec.gov/Archives/edgar/data/1059677/000101359407000192/xslF345X02/industrialfm4-032107_ex.xml

Feb. 27, 2007 - 413,100 shares

http://www.sec.gov/Archives/edgar/data/1059677/000101359407000160/xslF345X02/industrialfm4-030107_ex.xml

Feb. 26, 2007 - 243,070 shares

http://www.sec.gov/Archives/edgar/data/1059677/000101359407000158/xslF345X02/industrialfm4-022707_ex.xml

Feb. 20, 2007 - 220,770 shares

http://www.sec.gov/Archives/edgar/data/1059677/000101359407000154/xslF345X02/industrialfm4-022107_2ex.xml

Feb. 16, 2007 - 174.893 shares
http://www.sec.gov/Archives/edgar/data/1059677/000101359407000152/xslF345X02/industrialfm4-022107_1ex.xml

Insider Purchases-

March 19, 2007 - 150,000 shares

http://www.sec.gov/Archives/edgar/data/1059677/000116694407000001/xslF345X02/primary_doc.xml

Dec. 5, 2006 - 100,000 shares

http://www.sec.gov/Archives/edgar/data/1059677/000116694406000009/xslF345X02/primary_doc.xml

Dec. 4, 2006 - 90,500 shares

http://www.sec.gov/Archives/edgar/data/1059677/000135410106000006/xslF345X02/primary_doc.xml
http://www.sec.gov/Archives/edgar/data/1059677/000116694406000008/xslF345X02/primary_doc.xml
http://www.sec.gov/Archives/edgar/data/1059677/000116694406000007/xslF345X02/primary_doc.xml
http://www.sec.gov/Archives/edgar/data/1059677/000129141306000009/xslF345X02/primary_doc.xml

Future Growth-

Acquisition of fire extinguisher company on Feb 1, 2007:
http://biz.yahoo.com/pz/070201/112960.html

Joint venture with Chinese gas packager on Dec. 18, 2006:
"This new venture has the potential to increase the earnings of our company dramatically as this facility will be shipping worldwide. We expect this Joint Venture to be a strong profit center for IEAM for many years to come. Although it is premature to forecast earnings for the new venture, I would expect it to have at least the same impact as the acquisition of Pitt Penn.''

http://biz.yahoo.com/pz/061218/110633.html

Conclusion -

This is a hidden gem.  The non-cash derivative charges are hiding the true value of this company.  I anticipate that the non-cash derivative charges will dissappear by the end of the year.  Bottom line then will be over $0.50 EPS for the quarter.  And, that is just PittPenn.  Add in the China joint venture and IEAM will in a position to post over $1.00 per quarter by the end of the calendar year or soon thereafter.  That's $4.00 EPS for a full year!  A NASDAQ listing is in process, as well.

Industry average PE is 26.8. 
http://biz.yahoo.com/ic/113.html 

That makes IEAM a $107 stock that is now trading at $5.90.  That's right, an 18 bagger here folks. 
Couldn't be you say....  Why are all the institutions and insiders buying then?

Hello Buddjas,

I've been watching this one too, got out about the same time you did with a smiliar gain. 

What's with the CEO's big purchase on March 19th?

How reputable is Pike Capital? 

I might buy some tomorrow. 

nice chart  >:D
just fyi:

I have listening to the last web cast and I have bought IEAM @ 5.91$  >:D

why?
please check the slides (thanks & applauds buddjas1 for bringing this on my radar!)

cheers
Oliver


slide show part 1:

webcast (March 14th):
http://www.wsw.com/webcast/brileyco8/ieam.ob/

great comments and outlook, mandatory IMHO


slide show part 2:

Bought some shares today at $5.88 looks good ........

Nice move up today to close at $6.11

CEO bought 100,000 shares today at $6.00

P   2007-03-28   2007-03-28 15:28:51   Industrial Enterprises of America, Inc.   IEAM   MAZZUTO JOHN D   CEO   100,000   $6.00   $600,000.00   557,500   

It's funny that when the form 4 appeared on the SEC website, IEAM had not yet traded 100,000 all day.  Non open market purchase? 

 >:D >:D

looks good so far

Bought IEAM after La-Onda brought it to my attention. Looks good so far, Thanks bud:)

About IEAM

Industrial Enterprises of America, Inc., headquartered in New York, NY, is an automotive aftermarket supplier that specializes in the sale of anti-freeze, auto fluids, and other automotive additives and chemicals. The company has distinct proprietary brands that collectively serve the retail, professional, and discount automotive aftermarket channels.

Applauds to La - Onda for bringing this to my attention :)

This stock was brought up to us by ket earlier  when he made a good trade on a rebound, since then the stock has been in a steady ascending channel and now price is on the lower support line looking like its about to repeat history and head towards the top resistance again.

Whats very interesting is all of the insider buying. They're has been a vast amount of insider/institutional buying since the falling knife in december. Which definitely indicates that investors and insiders saw this as a huge buying opportunity.

Insiders and Pike Capital have purchased 1.87 million shares since december which is valued at $11.44m in conjunction with todays closing share price. On top of that IEAM announced at $10m share buy-back program in December as well, As of Feb 16th IEAM had rebought 950k shares and say the buy-back program runs til sept, so we still got some time for IEAM to drive price in our favor. Even as early as yesterday John Mazzuto bought another 100k shares at 6/share. Seems like they have some big plans for the future.

IEAM scored a record second quarter in revenues with 17m compared to Q1 of 10m and 5.6m same period last year. Partial increase of revenue came from the aquisition of pitt pen which offers motors oils and such and gave 5m addition revenues. costs decreased by 25%. EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter was $2.8 million, or $0.20 per share. Income from operations was $2.3 million in the quarter versus $345,000 in the first quarter.

Though since IEAM exercised over 50% of there convertible notes and warrents there income was hammered with another 4m in non-cash expenses bring there income into the negative territory once again. The good news is that they got rid of half of there warrants this quarter and should process the rest of them soon. And with IEAM continued growth and revenue for q4 expected to double this quaters revs the profits will probably start showing even with the conversions, and even more so once there gone. which makes this stock a diamond in the rough because this convertible debt is hindering IEAM's spotlight to value investors.

Technically as i stated previously the chart is in an ascending channel near the lower boundary and according to history should rally up near the top of the channel near 7.50 which is also where descending resistance is coming in as well for a shorter term profit target. Longer term we could possibly see price's hit near the 8.50's + to new highs.

Buying IEAM in the moring.

-fous

Fous, I am glad to see that you bought IEAM for your website. 

IEAM is my favorite stock for '07.

I agree that $6.50 to $7.00 will be some resistance.  Nothing much after that, though. 

IEAM's first day of Nasdaq trading will be a 3 million share 20% day.  Many institutions prefer to buy on margin, which is less available for stocks not on a major exchange.

FYI:

1)
Industrial Enterprises of America (IEAM)
At the other end of the spectrum in terms of market cap we have Industrial Enterprises of America, a $78 million market cap company that sells chemicals, additives and fluids used in cars and air conditioning systems. This stock has doubled since I wrote about this company in early December (http://investorideas.com/insiderscorner/Articles/120806.asp). I think it will go even higher because the company's chief executive John Mazzuto just purchased another $600,000 worth of the stock at $6. The stock got a bounce Wednesday on news of this purchase, and this name moves around a lot. So it may pay to be patient and buy with limit orders. Industrial Enterprises grows by buying "mediocre" companies and turning them around. It is also opening a plant in China which should bring down costs.

2)
(http://investorideas.com/insiderscorner/Articles/120806.asp) from December 8th 2006:

Look for beaten up names

I'm not selling any of these winners that I own. But for new positions, I'm not chasing strong performers like these either -- even where insiders are buying significant positions. There's too much bullishness in the market right now – suggesting we'll see pullbacks that will allow us to get better entries on the superior performers.
Instead, for new positions I'm sticking with insider-buy stocks that have been beaten up -- preferably savaged -- by the market, but unfairly so. I believe these will have more bounce if the overall rally continues. And they should see less downside in any reversal since they've already been pounded.
This kind of stock is hard to find. But the market handed us a prime example this week in Industrial Enterprises of America (IEAM), a tiny New York-based vendor of chemicals, additives and fluids used in cars and air conditioning systems.

A week to remember

Industrial Enterprises may be in some pretty dull businesses -- but management and investors have had an electrifying week.
A combination of delayed filings, disappointing earnings, surprise expenses and flubbed communications sent the stock tumbling nearly 70% to nearly $3 on huge volume.
But it doesn't seem that anything has really changed in the underlying businesses – except that they continue to get better. Cost cutting and sales growth should lead to a tripling of revenue by the second quarter of next year, over the year before. For act two, a plant in China is expected to help bring down costs in 2008.

A matter of trust

Management credibility is another matter. It took a severe hit along with the stock this week as investors griped openly in conference calls of a need to revamp communications with Wall Street. Chief executive John Mazzuto – in conference calls and in interviews with me – pulled no punches in offering a mea culpa. "We screwed up, there is no excuse," he says.
One of the biggest surprises for investors was a $1.6 million non-cash charge for expenses associated with warrant financing – an expense that should continue for about another year. Another no-no – delays in filings covering the last quarter – was linked to those financing expenses. Industrial Enterprises auditors held up the filings at the last moment to rework calculations on the warrant expenses, contributing to the delay.
Another problem was that Industrial Enterprises reported operating earnings below what investors expected – in part because the company took longer to do an overhaul of operations last quarter than it expected. All of this means that Mazzuto and Industrial Enterprises have lost a lot of trust with investors – many of whom preferred to exit and move on to companies where managers cook up fewer surprises.

A matter of time

But management credibility has a way of coming back over the course of a several quarters especially when you have two conditions in place.

    * Managers who face the problem head on at the outset and admit fault -- rather than hide out or pass the buck -- and take steps to resolve the problems. Mazzuto is taking over as finance chief and the firm is hiring a new auditor, among other changes.
    * A decent underlying business that is seeing healthy growth.

I believe you have both with Industrial Enterprises, which makes the stock a buy right here. Insiders seem to agree. They've purchased over $730,000 in the carnage this week. That's a lot for a small company like this. There are still disgruntled investors who want out. So the weakness isn't over. But on Thursday, at least, big buyers seemed to step in every time the stock fell to around $3.10. Be patient and purchase shares with limit orders.

What lies ahead

Here's a quick look at what the company does, and why what went wrong this week might not matter in the long run.

Industrial Enterprises has a division called EMC Packaging that repackages hydrofluorocarbon gases for use as a refrigerant, and in aerosol cans that shoot air as a way to clean things – like your computer keyboard. A division called Unifide Industries sells fluids used on cars like deicer, wind shield wiper fluid and tire cleaner. Pitt Penn Oil distributes discount motor oil, transmission oil, brake fluid, antifreeze and other fluids.

Here's what may bring decent gains in a year if you buy the stock now.

    * Chief executive Mazzuto likes to say he is in the business of buying "mediocre companies." Then he puts in new managers to fix them up, selling off non-core assets. Through a combination of things like cost cutting and cross-selling of products, the company expects to see $35 million in revenue in the June-ending quarter of next year.
      If so, that would be huge growth because the company saw less than that in revenue, or $30.7 million, for the entire fiscal year ending in June this year. The company expects to earn 45 cents a share in second quarter of next year, compared to 15 cents a share in the same quarter this year.
    * Industrial Enterprises is opening up a plant in China that should start shipping in March. It could double profit margins in the aerosol business. "It will have an enormous impact in 2008," says Mazzuto. The company is also expanding distribution of aerosol products to get a national reach.
    * Investors panicked in part this week because of apparently low cash levels. But Industrial Enterprises has $2.5 million in cash, and it expects monthly free cash flow of $700,000 to $1 million. Money from warrants – over $10 million – may be used to buy back stock in the coming months.
    * Mazzuto takes no salary. Instead he plans to reap his reward through a big position of around 350,000 shares purchased before the problems this week at an average price of about $5. His children also have large positions. Insiders, mainly Mazzuto, bought another $730,000 worth in the current sell off for prices ranging from $3.40 to $4.60. In short, he has a big incentive to do things that make the stock go higher.
    * By my calculation, Industrial Enterprises looks like its trading for a miniscule .25 or so times expected sales. That's cheap.


3)
updated chart, nothing seriously happened now, bouncing back from EMA 20, EMA 9 now new support  ;D

EMA50 has crossed EMA 200, low volume day, I will continue to hold  ;D

Cannot wait for fiscal year Q3 results.  Nasdaq has to be soon.  Regular MA golden cross probably in April.

stopped out, will be on my watchlist

Looks like I bought your shares and Fous's shares.   I doubled up a couple days ago.

NASDAQ trading approved
http://biz.yahoo.com/bw/070419/20070419005191.html?.v=1

Awesome NEWS: NASDAQ TRADING NEXT WEEK &

Industrial Enterprises of America Acquires Hi-Tach Oil
Thursday April 19, 8:00 am ET

NEW YORK--(BUSINESS WIRE)--Industrial Enterprises of America, Inc. (OTC BB:IEAM - News), a specialty automotive aftermarket supplier, today announced that the Company has purchased Hi-Tach Oil, Co., Inc. for $350,000 in a combination of cash and promissory notes. Hi-Tach, based in Kannapolis, North Carolina, sells and markets a distinct line of high quality oil additives and lubricants. As part of the purchase agreement, IEAM acquired all inventory, purchase orders, marketing materials, formulae and copyrights from Hi-Tach. Additional terms of the transaction were not disclosed.

Hi-Tach's high quality products may be found in independent auto parts stores, automotive chain stores, fast lubes and other retail outlets from coast to coast.

John Mazzuto, Chief Executive Officer of Industrial Enterprises, commented, "Hi-Tach Oil is a perfect complement to our existing Pitt Penn and Unifide product lines, and the transaction represents the purchase of another virtual marketing company that can leverage our existing operations. We will package the Hi-Tach products utilizing capacity at our Pitt Penn facility, thus increasing utilization rates while expanding our distribution footprint. Hi-Tach's stabilizers and lubricants are known for providing superior performance at reasonable prices, completely in sync with our business model." To learn more Hi-Tach, visit www.hi-tach.com.

Based on the news,is this a good entry point this morning? And interpreting the news, nasdaq trading being a positive and the acquisition a possible negative? Or should i let the market decide for me? Thoughts?

I will reenter today  >:D

Quote from: soxguy on April 19, 2007, 08:24:05 AM
Based on the news,is this a good entry point this morning? And interpreting the news, nasdaq trading being a positive and the acquisition a possible negative? Or should i let the market decide for me? Thoughts?

How is the acquisition negative?  It's only $350,000.  Even with an all share transaction, that's what 70,000 shares.

Nasdaq is huge, huge, huge.  I'm clearing out the account and going all in.

Obviously you guys are bullish. Could be fun. Thanks.

The bid is $6.00. Get in at the bell or wait and see?

Quote from: soxguy on April 19, 2007, 09:17:10 AM
The bid is $6.00. Get in at the bell or wait and see?

My analysis says IEAM is an 18-bagger.  Who cares about $0.20?

Cool.

i bought more... I still hold a significant position, I bought at around $3 during last year two days sell off.... I think it could see $8 in coming weeks

The real fun will begin when trades take place on Nasdaq.  Institutions (hedge funds) often buy on margin and margin funds are not typically available for OTCBB stocks.  I anticipate some heavy institutional buying next week. 

chart set up is improving, will hold IEAM as long term investment now  >:D

Would have been nice to buy weakness by locating nearest support when RSI(2) gave a signal to buy.
5.50 just came from the lowest line of the linear regression too.
IEAM may be a momentum play now.
Will keep this on my Stalk list for tommorow.

How is the acquisition negative?  It's only $350,000.  Even with an all share transaction, that's what 70,000 shares.

Nasdaq is huge, huge, huge.  I'm clearing out the account and going all in.
[/quote]

all in buddjas1? well I have bought just 10% of my total invested capital but again the facts summarized by focus and you are just  >:D >:D >:D

Let me summarize the most important facts again,(please don´t forget the huge insider buying  8) ):

countdown is running.....  ;)

I think ieam is on nasdaq this morning.

Industrial Enterprises of America to Begin Trading on NASDAQ Today
Tuesday April 24, 9:36 am ET

NEW YORK--(BUSINESS WIRE)--Industrial Enterprises of America, Inc. (NASDAQ: IEAM - News), a specialty automotive aftermarket supplier, announced that it will begin trading on The Nasdaq Capital Market today under the symbol IEAM.

"We are very proud of this achievement and look forward to the enhanced liquidity that trading on the Nasdaq will afford," stated John Mazzuto, Chief Executive Officer.
;)

IEAM: Short Interest UP 71.9% to 418.9K in Apr 2007
Tuesday , April 24, 2007 18:07ET

According to new short interest data from OTCBB.com, short interest for Industrial Enterprises of America Incorporated (NasdaqSC: IEAM) INCREASED 71.9% to 418,920 shares for the month ended mid-April, 2007.

SYMBOL         MARCH           APRIL          CHANGE       %CHANGE  DAYS/COVER
--------   -------------   -------------   -------------  ------------  ----------
IEAM             243,698         418,920        +175,222       +71.90%           3

Based on IEAM's 20-day average daily share volume of 167,121, it would require approximately 3 day(s) of buying to cover this short interest.

chart generally positive, MACD crossing

Quote from: la-onda on April 20, 2007, 10:40:33 PM

all in buddjas1?

Getting there.  I sold my SILC and will likely put that into IEAM.  I still own CIMT, which I'll hold onto for awhile.  I still own some MSI, as well, because I'm carrying a loss there. 

Things are looking great with IEAM.  Not long until earnings release (I suppose May 15). 

I picked up about 3000 shares at a net cost of about $6.10.

Insiders and Pike Capital are in at about $6 so I think they will keep it about that amount.  Long term this seems like a fundamentally good company. It may take awhile before it hits radar screens. Maybe after IEAM starts turning in a profit (32 - 34 cents this quarter and about 50 cents next quarter).

up we go; have a nice weekend

IEAM getting some love this morning. On no news either.

very low volume... could go back on few trades...

Thanks buddjas1 for the tip... I took a small position today in IEAM.

Thought maybe we should try to apply David's formula to IEAM.   Being just a newby this is a rough estimate with rough numbers.  Maybe then everyone else can chime in and make it more accurate.

Initial Share Price:  6.20
Share Count: 15.6mil
Dilution Factor: ?  (Not really sure what to put here.)
Final Share Count:  18 mil (I don't know, be ignorant to think there won't be some dilution)
Initial Rev:  68 mil   (last quarters 17mil *4)
Continual Annual Growth Rate CAGR:  1.40   (again extremely conservative the last quarter it was more like 1.7)
Final Rev:  160 mill (estimate my math skills were lost years ago)
Initial Prof Margin:  .24
Final Profit Est:  .25 (Being conservative here.  CC Sounds like they are cutting a ton of corners already not sure how many more they can cut)
Final Net Income:  40 mil
EPS Estimate:  2.22
EPS Multiple:  13
Final Share Price:  28.8

Well, it's a start.  Seems too good to be true.  Could use some help from the board members.  If they hit their numbers for this quarter (which they probably will hence the CEO share purchase at the end of March.  Plus conference call in february didn't hint that anything was wrong) this stock should start to move.   Please post with your thoughts.  GL!

Well, I listened again to the presentation the CEO gave in March.  He made a comment "I don't see any reason to raise capital for at least 2 years".   I guess that would mean no dilution except for companies they continue to buy. 

Quote from: Trumpitall on May 03, 2007, 10:40:01 AM
Well, I listened again to the presentation the CEO gave in March.  He made a comment "I don't see any reason to raise capital for at least 2 years".   I guess that would mean no dilution except for companies they continue to buy. 

Yes; good catch. 

I like IEAM fundamentally.  I am holding 3200 shares long. The company doesn't have much volume.  I keep hoping that when it hits the radar screens with its upcoming profitable earnings that eventually this will really fly.  I believe it is worth alot but sometimes it takes a long time before the share price catches up. Look at DXPE - I think it may be the same kind of business.  It went crazy after IBD put it on their radar.

very low volume, I am continue to hold IEAM  ;D

IEAM IR quotation (mail):
......
"we will be releasing earnings and have a conference call early next week. We will let investors know the final day/time very shortly."

;)

Because of problems back in December, the CEO has said he wants to get the numbers out early. 

Last quarter they got them out on time. 

If they can get them out early this quarter, I see that as management really building the trust back. 

Quote from: Trumpitall on May 10, 2007, 04:39:53 AM
Because of problems back in December, the CEO has said he wants to get the numbers out early. 

Last quarter they got them out on time. 

If they can get them out early this quarter, I see that as management really building the trust back. 

I don't think that Nasdaq would have permitted the listing unless IEAM had shown that internal controls were in place to file timely the 10Qs.  I cannot wait.

Quote from: la-onda on May 09, 2007, 11:38:17 PM
IEAM IR quotation (mail):
......
"we will be releasing earnings and have a conference call early next week. We will let investors know the final day/time very shortly."

;)

Was that a response to your e-mail to IR?

yes, answer arrived today;
imho monday or tuesday next week  ;)

Quote from: la-onda on May 10, 2007, 01:00:39 PM
yes, answer arrived today;
imho monday or tuesday next week  ;)

Tick, tick, tick.  No word yet.  IEAM better file this one on-time.

fyi (10th of May answer):

Oliver,
I cannot comment on some of these questions right now, but we will be releasing earnings and have a conference call early next week. We will let investors know the final day/time very shortly.

Thanks,
Chris

-----Original Message-----
From: [email protected]
Sent: Wed 5/9/2007 7:50 PM
To: Chris Witty
Subject: IEAM IR Update

Dear Mr. Witty,
I would like to ask you (as the IR contact person from Industrial Enterprises of America ) a few questions about IEAM:

1) As a NASDAQ traded company, IEAM should publish their new official website http://www.ieam-inc.com/ as soon as possible. Is there any timeline existing?
2) When will be the next IEAM earnings announced? Will there be also an update 2007 outlook/guidance given?
3) Could you please publish an updated IEAM investor presentation (latest version: http://www.ieam-inc.com/IEAM-BRiley-Final.pdf)?

All shareholders are looking forward to receive an IEAM update.


thanks in advance & best regards
Oliver Huss

http://biz.yahoo.com/bw/070515/20070515006224.html?.v=1

Just another example of IR lying to shareholders for no reason.

Industrial Enterprises of America Delays Fiscal 2007 Third Quarter Filing
Tuesday , May 15, 2007 13:11ET

NEW YORK, May 15, 2007 (BUSINESS WIRE) -- Industrial Enterprises of America, Inc. (OTC BB:IEAM), a specialty automotive aftermarket supplier, today announced it will file a Form 12b-25 with the Securities and Exchange Commission for an automatic five day extension to file its Quarterly Report on Form 10-Q for the period ended March 31, 2007. Due to the sudden illness of the Company's recently-appointed CFO, Dennis O'Neill, Industrial Enterprises requires additional time to complete the remaining work necessary to file its Quarterly Report on Form 10-QSB. The Company now plans to file its fiscal third quarter results on May 22, 2007. Effective immediately, as Mr. O'Neill is recovering, current CEO John Mazzuto will serve as acting CFO. Details regarding the Company's third quarter earnings conference call will be provided in a subsequent press release.

still holding buddjas1?

Quote from: la-onda on May 15, 2007, 01:51:44 PM
still holding buddjas1?

Yes, but I am mad.

Yes, I am mad as well. What is with this company's inability to file a timely 10-Q? >:(

but not so mad buying more  ::) ?

(also still holding)

Quote from: ygtrdr on May 15, 2007, 01:58:49 PM
What is with this company's inability to file a timely 10-Q? >:(

I don't get it either.  It's a shame.

Quote from: la-onda on May 15, 2007, 02:00:40 PM
but not so mad buying more  ::) ?

(also still holding)

Thanks for supporting the share price.  IEAM better be buying back shares today, as well, as this is IEAM's fault.

ugly chart one day before the Q3 communication  :-X

still holding  :o

Has anyone contacted IR and gotten any information?  This is really frustrating.  I just hope they aren't hiding anything like last time they were late. 

Staying strong for now.   My reasoning ...

1.  The presentation in Mid March mentioned no bad news about the quarter

2.  CEO bought right after the quarter ended.

3.  Stock buy back program still in place.  Could bump us up real quick. 

I'm definitely nervous though.   

OUCH !  I've got 3000 shares at about $6.10 or so.....

It looks like it has a good future but who really knows?

Industrial Enterprises of America to Host Fiscal Third Quarter Conference Call on May 22
Monday , May 21, 2007 11:30ET

NEW YORK, May 21, 2007 (BUSINESS WIRE) -- Industrial Enterprises of America, Inc. (NASDAQ: IEAM), a specialty automotive aftermarket supplier, today announced that it will host an earnings conference call at 9:00 a.m. Eastern on May 22, 2007 for the company's fiscal third quarter ended March 31, 2007. Financial results will be released on May 21, 2007, after 4pm. During the call, John Mazzuto, Chief Executive Officer, will discuss the company's quarterly performance and financial results. The telephone number for the conference call is 877-407-0782. The call will be webcast and can be accessed on the website http://www.investorcalendar.com.

MARCH presentation slides are the benchmark

Man!  news is out and it's not good.  http://yahoo.brand.edgar-online.com/fetchFilingFrameset.aspx?dcn=0001354717-07-000051&Type=HTML (http://yahoo.brand.edgar-online.com/fetchFilingFrameset.aspx?dcn=0001354717-07-000051&Type=HTML)

Rev: 17mil
Ebitda: 2.1

Basically a little bit better than last quarter. 

What's so hard about giving honest prediction estimates?  I still think this company has a lot of potential, but this is twice that management has messed up. 

CC should be interesting.  I wonder what excuse they'll give for why they didn't make 25mil in revenues like they predicted in Mid-March. 

Not sure what to do now.   

I was ready to go long but when I saw the results I decided to try a short term short trade... I some buys it at $5, I will do it...

My CC Notes:

-CFO has been ill for awhile.  Still not back to work yet.
-Revenues down, but units produced was up 30% inline with expectations.
-Senior Operator is going to help improve margins.  He started in April.  (more than anticipated)
                Changes:  No more standard costs,

Based on previous EBITDA .30 eps is the base.  At least going forward. 

-Still blaming the weather. 
-Not going to do .50 a share this quarter like previously predicted because of weather. 
-Virtual marketing going forward.
-China venture proceeding.   Building not finished yet. 

2 Quarters showing plan is working.
Going national in marketing.
Sales force increasing.
Now competitive to expand geographic area. 
5 mil  of stock buyback used   
Still reducing debt.  Down to 4mill now. 

End of the year will have the numbers to move from small cap NASd to large cap NASD.  But will wait to see trend before applying.

Still hyping China.  Where they will be able to ship to CA and the west coast.  Increases EMC from 3 months to 10months.

New website in beta.  Should be out soon to help get story out. 

Realizes numbers were late and he swore not to do that. 

Plans to have margins increasing in the future. 

Questions ....

1.   Going to start seeing bulk sales per quarter.
2.   Bulk sales will contribute to 1/3rd of sales to wholesalers.
-   Means lines will run longer.   (Changing lines loses them about 2hrs per shift)
-   Still aiming to get 32% margins now at about 26-28
-   Wholesalers do not sell in the same channels as their branded products.  (No competing)

3.    March 31 fully diluted share count at 17mil   adjustments ... 2 mill performance related shares not disbursed yet to employees.  Also since March 31 bought about 1 million shares.   Trying to offset warrants with share buyback.  All warrants etc should be gone by June. 

4.    One guy congratulated him on the quarter. 

5.   Some of the share buybacks aren't actually bought yet, there are legally binding notes to buy them. 

6.   "Not going to let share count go above where we are"

7.   Legal issues with other shares.  Not counted.  Being settled in court.

8.   In june looking at 13 million in shares outstandings.

9.    Environmental issues on China venture ... apparently doesn't apply to them. 

10.   CEO has plans to buy a lot more shares himself.  Doesn't want to interrupt company buyback. 

11.   Released this morning results because they missed the 6pm cutoff yesterday. 

12.    No real costs for china venture at this point.

13.   Sales reps are all commissioned.   10-99d.  Only about 4 are employees.  Other 80 are commissioned.

14.   Buyback notes not really mentioned in this quarter report.


Story still sounds good.  Wish I would have waited to buy until now though. 

hope this was the bottom  ;)

10 min chart from today:

Obviously not the quarter that Mazzutto promised with only 15 days left in the quarter (in late March).  Just another example of extremely questionable behaviour. 

In any event, assuming a base of $0.30 per quarter in EBITDA going forward, IEAM is still undervalued.  $0.30 * 4 *20 = $24 / $5 = 4.8 bags, on current numbers.  More, of course, after China JV.

I will be buying more at these levels.

Thanks Oliver for your questions...
1. Website development still underway
2. We will update the investor presentation in June
3. The company has a $10 million stock buyback program
4. There is no transcript available

Take care,
Chris

-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Wednesday, May 23, 2007 8:39 AM
To: Chris Witty
Subject: RE: IEAM IR Update

Hi Chris,
the IEAM Q3 numbers are disappointing and not aligned the IEAM March presentation update.
I kindly ask you again my questions from a few weeks ago:

1) As a NASDAQ traded company, IEAM should publish their new official website http://www.ieam-inc.com/ as soon as possible. Is there any timeline existing?
2) Could you please publish an updated IEAM investor presentation (latest version: http://www.ieam-inc.com/IEAM-BRiley-Final.pdf)?
3) Is there any other stock buy back programs planned to support the stock price?
4) Is there any transcript from the CC available?

thanks in advance
Oliver

as requested buddjas1  ;D

http://www.secform4.com/insider-trading/1059677.htm

&

IEAM: Short Interest UP 100.0% to 767.2K in May 2007
Friday , May 25, 2007 01:05ET

According to new short interest data from NASDAQ, short interest for Industrial Enterprises of America Incorporated (NasdaqSC: IEAM) INCREASED 100.0% to 767,191 shares for the month ended mid-May, 2007.

SYMBOL             APRIL             MAY          CHANGE       %CHANGE  DAYS/COVER
--------   -------------   -------------   -------------  ------------  ----------
IEAM                   0         767,191        +767,191      +100.00%           3

Based on IEAM's 20-day average daily share volume of 257,121, it would require approximately 3 day(s) of buying to cover this short interest.

cheers
O.

Thanks for the info (applaud).  Nice to see strong institutional support.

Thanks for the info.  I am sitting on 3,000 shares long term (I think $6.10 cost)....

Pike owns over 24% outstanding shares now.

http://www.sec.gov/Archives/edgar/data/1059677/000101359407000291/industrial13da-052507.htm

100,000 more for Johnny boy:

http://www.sec.gov/Archives/edgar/data/1059677/000116694407000003/xslF345X02/primary_doc.xml

Somebody bought 56,283 more at the end of the day.

BUYINS.NET: XFML, ARGL, IEAM, PURE, SHMT, SNDN Have Also Been Added To Naked Short List Today
Tuesday , May 29, 2007 09:24ET

May 29, 2007 (M2 PRESSWIRE via COMTEX) -- BUYINS.NET, www.buyins.net, announced today that these select companies have been added to the NASDAQ, AMEX and NYSE naked short threshold list: Xinhua Finance Media Ltd. (NASDAQ: XFML), Argyle Security Acquisition Corporation (OTCBB: ARGL), Industrial Enterprises of America Inc. (NASDAQ: IEAM), PURE Bioscience (OTCBB: PURE), Shumate Industries Inc. (OTCBB: SHMT), SendTec Inc. (OTCBB: SNDN). For a complete list of companies on the naked short list please visit our web site. To find the SqueezeTrigger Price before a short squeeze starts in any stock, go to www.buyins.net.
...............

Industrial Enterprises of America Inc. (NASDAQ: IEAM) an automotive aftermarket supplier, sells anti-freeze, auto fluids, charcoal fluids, and other additives and chemicals in the United States. The company, through its subsidiaries, manufactures and sells packaged refrigerants for the automotive and dusting markets; markets and distributes a line of automotive aftermarket chemicals to the retail, wholesale, value chains, and private labeling markets; and manufactures liquid and aerosol products. In addition, it supplies automotive and chemical products, including engine oils, transmission oils, washer solvents, brake fluids, and gasoline additives. Industrial Enterprises of America, formerly known as Advanced Bio/Chem, Inc., was founded in 1974 and is headquartered in New York, New York. With 13.30 million shares outstanding and 418,900 shares declared short as of April 2007, there is a failure to deliver in shares of IEAM.


nice insider buying today  :D

chart:

chart is looking better now!!  8)

IEAM: Jumps +2.80%; Vol +121%; Last 90 Min of Trading
Thursday , June 07, 2007 16:21ET

During the last 90 minutes of today's session, shares of Industrial Enterprises of America Incorporated (NasdaqSC: IEAM) demonstrated a strong UPWARD close relative to its 13:30 ET statistics. "Strong Closers" are determined by proprietary Knobias calculations performed during the last segment of each trading day.

sym: IEAM      @13:30 ET     @CLOSE    % CHANGE
----------   -----------   -----------  ------------
PRICE              $5.00             $5.14        +2.80%
VOLUME           116,700       257,900      +120.99%
#TRADES            109           187            +71.56%
DAY-HI             $5.09         $5.14           LATE-HI
DAY-LO             $4.90         $4.90           N/A

&

BUYINS.NET: ISR, CN, INO, BCRX, GTOP, IEAM Have Been Removed From Naked Short List Today
Wednesday, June 06, 2007 09:20ET
....
Industrial Enterprises of America Inc. (NASDAQ: IEAM) an automotive aftermarket supplier, sells anti-freeze, auto fluids, charcoal fluids, and other additives and chemicals in the United States. The company, through its subsidiaries, manufactures and sells packaged refrigerants for the automotive and dusting markets; markets and distributes a line of automotive aftermarket chemicals to the retail, wholesale, value chains, and private labeling markets; and manufactures liquid and aerosol products. In addition, it supplies automotive and chemical products, including engine oils, transmission oils, washer solvents, brake fluids, and gasoline additives. Industrial Enterprises of America, formerly known as Advanced Bio/Chem, Inc., was founded in 1974 and is headquartered in New York, New York. With 13.30 million shares outstanding and 767,200 shares declared short as of May 2007, there is no longer a failure to deliver in shares of IEAM.

Yesterday did not feel like a rally.  Let's hope for some follow-through.

last but not least IEAM has launched their new website:

http://industrialenterprisesinc.com/

hope that some news will come out soon
buddjas1, still holding all your shares?

cheers
Oliver  8)

Quote from: la-onda on June 09, 2007, 11:52:39 PM
buddjas1, still holding all your shares?

yes; still patiently holding. 

I am also holding about 3000 shares....

On fire. Finally.  Up 7+%.

415,000 more shares for Pike.

http://www.sec.gov/Archives/edgar/data/1059677/000101359407000333/xslF345X02/industrialfm4-061807_ex.xml

We just got a mention on CNBC from an analyst from Pacific Growth Equities! Already up close to 10% on 17,000 shares. This may be a good day! :)

I wondered what was sparking the pre-market buying.  'bout time!!!!!

Quote from: buddjas1 on June 18, 2007, 10:34:33 PM
415,000 more shares for Pike.

http://www.sec.gov/Archives/edgar/data/1059677/000101359407000333/xslF345X02/industrialfm4-061807_ex.xml

Quote from: ygtrdr on June 20, 2007, 09:19:02 AM
We just got a mention on CNBC from an analyst from Pacific Growth Equities! Already up close to 10% on 17,000 shares. This may be a good day! :)

Perhaps this will be the catalyst :)

I'll make a fresh review of IEAM at www.stocksonvideo.com. Good luck buddjas1, you deserve it, your hands are pretty strong on this one.

Quote from: David Randolph on June 20, 2007, 10:11:37 AM
I'll make a fresh review of IEAM at www.stocksonvideo.com. Good luck buddjas1, you deserve it, your hands are pretty strong on this one.

IEAM will not fit your model unless you use EBIDTA income numbers, because of the derivative interest charges. 

Regarding strong hands, thanks for the comment.  The price will eventually reflect the fundamentals and I'll be there when it does.

Oh, don't forget ELP; I recommended it 20% ago.

QuoteIEAM will not fit your model unless you use EBIDTA income numbers, because of the derivative interest charges.

No, I'll estimate what net profit margin would be without the charges, roughly 7% after 40% income taxes ;)

Quote from: ygtrdr on June 20, 2007, 09:19:02 AM
We just got a mention on CNBC from an analyst from Pacific Growth Equities! Already up close to 10% on 17,000 shares. This may be a good day! :)

What did he say, do you know ygtrdr?

It's important to know if that can be the catalyst or not. Initially I thought the stock was running because of report that Pike Capital increased their holdings, but instead the stock went down after that file 4 came out. So it is that analysts words that are moving the stock  ... I would like to know if it's for the right reasons.

Anybody heard? Thanks.

http://www.cnbc.com/id/15840232?video=386261609&play=1

Here's the CNBC video.  He pumps IEAM in pre-market, noting that IEAM trades with a P/E of 4.

Quote from: buddjas1 on June 20, 2007, 11:57:05 AM
http://www.cnbc.com/id/15840232?video=386261609&play=1

Here's the CNBC video.  He pumps IEAM in pre-market, noting that IEAM trades with a P/E of 4.

Thanks buddjas1.

Quote from: Trumpitall on May 02, 2007, 04:52:02 PM
Thought maybe we should try to apply David's formula to IEAM.   Being just a newby this is a rough estimate with rough numbers.  Maybe then everyone else can chime in and make it more accurate.

Initial Share Price:  6.20
Share Count: 15.6mil
Dilution Factor: ?  (Not really sure what to put here.)
Final Share Count:  18 mil (I don't know, be ignorant to think there won't be some dilution)
Initial Rev:  68 mil   (last quarters 17mil *4)
Continual Annual Growth Rate CAGR:  1.40   (again extremely conservative the last quarter it was more like 1.7)
Final Rev:  160 mill (estimate my math skills were lost years ago)
Initial Prof Margin:  .24
Final Profit Est:  .25 (Being conservative here.  CC Sounds like they are cutting a ton of corners already not sure how many more they can cut)
Final Net Income:  40 mil
EPS Estimate:  2.22
EPS Multiple:  13
Final Share Price:  28.8

Well, it's a start.  Seems too good to be true.  Could use some help from the board members.  If they hit their numbers for this quarter (which they probably will hence the CEO share purchase at the end of March.  Plus conference call in february didn't hint that anything was wrong) this stock should start to move.   Please post with your thoughts.  GL!

Hi Trumpitall, nice exercise :)

You made just one serious mistake, which was confusing gross margin with net profit margin. Gross margin in the March quarter was 22.2%. Net profit margin going forward, after all the charges are gone, will probably be something like 7%, after we factor in income taxes.

I'll make a brief video analysis for IEAM now, tough stock, that's probably why it is undervalued.

Great David, Thanks.  Yeah, it was a poor attempt, but figured I would give it a try.  Can't wait to see the video.  It's been hard to be strong the last few weeks. 

 

The new video analysis by David Randolph (Rating IEAM with 8 out of 10)

I hate taxes.  CEO, I believe, stated that IEAM would not pay income tax until FY09.  I have to double check that, but I know that topic was dicussed in the last conference call. 

IEAM will surely pass by 10, and sooner than later, I bet.

http://www.sec.gov/Archives/edgar/data/1059677/000101359407000348/xslF345X02/industrialfm4-062207_ex.xml

356,000 more for Pike.  Pike's going to end up owning the whole company.

from clipreport today:
IEAM Sees Increase in Institutional Buying
....
Another name has recently seen an increase in institutional buying:
Industrial Enterprises of America

(IEAM) is a holding company with four wholly owned subsidiaries, EMC Packaging, Inc, Unifide
Industries, Todays Way Manufacturing, LLC, and Spinwell Holding Company, LLC.
EMC's business consists of converting hydrofluorocarbon gases ("HFC") R134a and R152a into
branded private label refrigerant and propellant products. Unifide is a leading marketer and seller of automotive chemicals and additives, and Todays Way manufactures and packages the products sold by Unifide.
Spinwell, through its wholly owned subsidiary Pitt Penn Oil Co., LLC, is a leading manufacturer,
marketer and seller of automotive chemicals and additives. Shares of the Company were recently accumulated by Pike Capital which had amassed over 24% of the total shares. The large stake could be a sign of some interesting quarters ahead. As are the buys by CEO, John Mazzuto, which have totaled over 600 thousand shares in the last 9 months. One reason for the buys could be the recent earnings reports that have showed some improving conditions.

Revenue for the third quarter was $17.6 million as compared with $9.0 million for the same period in fiscal 2006, a 95% increase. The increase in revenue over last year was partially
due to the inclusion of the Pitt Penn Group, acquired January, 2006, and more importantly due to increased production capabilities.
The GAAP bottom line numbers were somewhat misleading though. Earnings were for a loss of
47c per share versus a loss of $1.60 per share the year before. The numbers included an accounting change from their recent acquisition of Pitt Penn. The inventory accounting method was corrected from average cost accounting to FIFO (First In, First Out).
Absent the accounting correction, results for the third quarter would have been a gross profit of
$4.8 million, representing a gross margin of 27.3%, and EBITDA (earnings before interest, taxes, depreciation and amortization) of $3.7 million, or $0.29 per share, calculated using the treasury method, or 13 million shares as of March 31, 2007.
When taking the non GAAP numbers into consideration, the name could be grossly undervalued
which would explain the investments from Pike and others.

Add to the fact that the company increased unit through-put by approximately 30% through improved operating efficiencies and additional manufacturing shifts even though orders continued to outpace shipments and the name becomes one to track over the coming quarters. Investors would be wise to watch.

http://www.knobias.com/clipreport/clipreport.pdf

Chart & Insider Trading:

Thanks for the post, la-onda.  Applaud.

Quote from: la-onda on May 24, 2007, 09:21:22 AM
2. We will update the investor presentation in June

la-onda, can you follow up with Chris on this?   

IEAM: Short Interest DN 28.8% to 546.1K in Jun 2007
Tuesday , June 26, 2007 16:34ET

According to new short interest data from NASDAQ, short interest for Industrial Enterprises of America Incorporated (NasdaqSC: IEAM) DECREASED 28.8% to 546,059 shares for the month ended mid-June, 2007.

SYMBOL               MAY            JUNE        HANGE       %CHANGE      DAYS/COVER
--------   -------------   -------------   -------------  ------------  ----------
IEAM             767,191         546,059        -221,132        -28.82%           2

Based on IEAM's 20-day average daily share volume of 273,563, it would require approximately 2 day(s) of buying to cover this short interest.

no update from Chris yet  :'(

seems to be that 5$ is the support & accumulation area  8)

no news no IR  ::)

still waiting

QuoteIndustrial Enterprises Provides Fourth Quarter and Year-End Update
Thursday July 12, 3:05 pm ET
Board of Directors Authorizes $25 million Increase to Share Repurchase Program

NEW YORK--(BUSINESS WIRE)--Industrial Enterprises of America, Inc. (NASDAQ: IEAM - News), a specialty automotive aftermarket supplier, today reported preliminary fiscal fourth quarter financial highlights, including positive changes in its capital structure and balance sheet.

ADVERTISEMENT
As expected, a majority of the Company's $4.6 million in convertible debt was converted into equity at the end of the quarter, and the Company's overall debt was reduced to less than $3 million from greater than $14 million. Additionally, the total number of warrants outstanding fell to fewer than 500,000 from 2 million. The reduction of convertible debentures and warrants outstanding significantly lowers the potential dilution going forward; however, due to the recent conversion of debt into equity, warrants exercised, and the interest and liquidated damages related to such debt paid in stock, the Company's outstanding share count has temporarily increased to approximately 19 million shares of common stock. The current share count also reflects management's near-term decision to use warrant proceeds to pay down debt instead of buy back shares. Shares outstanding does not include shares repurchased in the Company's share repurchase program, via cash or note, shares that are in the process of being cancelled and shares that have been issued but not earned, which would all be reported by the transfer agent as outstanding.

TA is reporting over 23.5 million O/S currently.

Quote
Due to the improved financial strength of the Company's balance sheet, the Board of Directors has voted to increase the existing share buyback program by $25 million dollars in order to minimize the effect of the debt conversions and to keep the share count consistent with management's prior 13-14 million share guidance. This does not include stock that may be issued as part of future acquisitions.

For the fiscal fourth quarter ended June 30, 2007, financial performance is expected to be on par with previously guided earnings estimates of $4.0 million, although such performance is always subject to auditor adjustments. However, revenues are expected to come in lower than anticipated due to a change in product mix, as previously discussed on the Company's third quarter conference call. Additionally, the Company's accounts receivable balance, which had risen sharply in the previous two quarters due to bulk sales, has been subsequently reduced by those amounts as receivables on the bulk sales have been collected. Actual financial results are expected to be reported sometime in late September.

Chief Executive Officer John Mazzuto stated, "Moving into fiscal 2008, our balance sheet is stronger than it has ever been, and the potential dilution to our stockholders has been largely eliminated due to the conversion of debt and exercise of warrants. I feel we have taken the necessary steps to position IEAM for substantial revenue growth and margin expansion going forward, providing a strong return on investment for our stakeholders. Now that our Board of Directors has authorized an increase in our share repurchase program, we will continue to purchase stock at the appropriate times."

The potential for dilution has been largely eliminated?  That's because the potential has already been realized!

They hint at good things for stockholders in the future but its been their questionable management that keeps stockholders away.  Maybe there's a good reason why this stock is "undervalued".

EAM: Drops -4.57%; Vol +110%; Last 90 Min of Trading
Thursday , July 12, 2007 16:21ET

During the last 90 minutes of today's session, shares of Industrial Enterprises of America Incorporated (NasdaqSC: IEAM) demonstrated a strong DOWNWARD close relative to its 13:30 ET statistics. "Strong Closers" are determined by proprietary Knobias calculations performed during the last segment of each trading day.

sym: IEAM      @13:30 ET        @CLOSE      % CHANGE
----------   -----------   -----------  ------------
PRICE              $5.03         $4.80        -4.57%
VOLUME           398,200       835,300      +109.77%
#TRADES              477         1,254      +162.89%
DAY-HI             $5.15         $5.15           N/A
DAY-LO             $4.97         $4.77       LATE-LO



very disapppointing  ::) :-[

La-onda and Buddjas1:

What's your trading plan (assuming you currently own shares)?

to summ up:
Industrial Enterprises Provides Fourth Quarter and Year-End Update
Thursday , July 12, 2007 15:05ET

NEW YORK, Jul 12, 2007 (BUSINESS WIRE) -- Industrial Enterprises of America, Inc. (NASDAQ: IEAM), a specialty automotive aftermarket supplier, today reported preliminary fiscal fourth quarter financial highlights, including positive changes in its capital structure and balance sheet.

As expected, a majority of the Company's $4.6 million in convertible debt was converted into equity at the end of the quarter, and the Company's overall debt was reduced to less than $3 million from greater than $14 million.
Additionally, the total number of warrants outstanding fell to fewer than 500,000 from 2 million.
The reduction of convertible debentures and warrants outstanding significantly lowers the potential dilution going forward; however, due to the recent conversion of debt into equity, warrants exercised, and the interest and liquidated damages related to such debt paid in stock, the Company's outstanding share count has temporarily increased to approximately 19 million shares of common stock.
The current share count also reflects management's near-term decision to use warrant proceeds to pay down debt instead of buy back shares. Shares outstanding does not include shares repurchased in the Company's share repurchase program, via cash or note, shares that are in the process of being cancelled and shares that have been issued but not earned, which would all be reported by the transfer agent as outstanding.

Due to the improved financial strength of the Company's balance sheet, the Board of Directors has voted to increase the existing share buyback program by $25 million dollars in order to minimize the effect of the debt conversions and to keep the share count consistent with management's prior 13-14 million share guidance. This does not include stock that may be issued as part of future acquisitions.

For the fiscal fourth quarter ended June 30, 2007, financial performance is expected to be on par with previously guided earnings estimates of $4.0 million, although such performance is always subject to auditor adjustments. However, revenues are expected to come in lower than anticipated due to a change in product mix, as previously discussed on the Company's third quarter conference call. Additionally, the Company's accounts receivable balance, which had risen sharply in the previous two quarters due to bulk sales, has been subsequently reduced by those amounts as receivables on the bulk sales have been collected. Actual financial results are expected to be reported sometime in late September.

Chief Executive Officer John Mazzuto stated, "Moving into fiscal 2008, our balance sheet is stronger than it has ever been, and the potential dilution to our stockholders has been largely eliminated due to the conversion of debt and exercise of warrants. I feel we have taken the necessary steps to position IEAM for substantial revenue growth and margin expansion going forward, providing a strong return on investment for our stakeholders. Now that our Board of Directors has authorized an increase in our share repurchase program, we will continue to purchase stock at the appropriate times."

the marked statement is difficult to for me to get a right conclusion.
I have sold 30% of my shares two days ago, holding the other 70%.

any other comments?

cheers
Oliver

Hi there, I also saw the news yesterday and the negative market reaction.

We can see it both ways:

1) Management talks about 19 million shares outstanding now, which means a $91.2 M market cap at yesterday's closing price of $4.8. And they say "earnings" (I wonder if they mean net income, probably they do, or they would be misleading investors) for the 4th quarter will be approximately $4 M.

If we multiply this quarter by four we get to a $16 M full year earnings estimate, and that means the stock is trading at a very cheap $91.2 M/$16 M = 5.7 times forward earnings (no growth considered).

Now, what puzzles me is:

2) "As expected, a majority of the Company's $4.6 million in convertible debt was converted into equity at the end of the quarter, and the Company's overall debt was reduced to less than $3 million from greater than $14 million. Additionally, the total number of warrants outstanding fell to fewer than 500,000 from 2 million."

The share count increased from:

«As of May 18, 2007, 13,297,754 shares of the registrant's Common Stock were outstanding.» to, according to management, 19 million shares. This is a 5.7 million share count increase. If these shares were converted at say, $5, then they would result in proceeds to the company of roughly $28.5 M.

Yet debt was reduced by just $11 M. Where did the other $17.5 M go?

Are they cash now? Management says the following about the balance sheet:

«Due to the improved financial strength of the Company's balance sheet, the Board of Directors has voted to increase the existing share buyback program by $25 million dollars in order to minimize the effect of the debt conversions and to keep the share count consistent with management's prior 13-14 million share guidance.»

I guess this may very well be true.

If they buy $25 M shares at $5, the share count will be reduced by 5 million, from 19 million back down to 14 million. And they seem to have the cash to really do it.

My take is if you own IEAM, you have no reason to sell because of yesterday's news, in my personal view, which can be wrong, let's see what the market says. I'm going to stay on the sidelines because I've decided to wait for a truly bullish catalyst to buy ... I don't mind buying 20 or 30% higher, if I see more transparency and a clear way for an ascending share price. It's just that IEAM is too complicated and I don't like to look too deep to find the value. It should be more or less apparent at first sight.

Anyway, this is my view of the facts, good luck dudes :)

thanks for the comments.  I had to convince IEAM to issue the press release yesterday.  The transfer agent had leaked material yet non-public information yesterday about the outstanding shares.  Under such circumstances, IEAM had 24 hours to disclose publicly the information.  People were alredy trading based on that information.  I very nearly contacted the SEC. 

Regarding the statements made in the PR, I am disappointed because the CEO was caught in another lie.  He had promised in the last conference call not to let the outstanding shares exceed 13 million.  He did not mention 19 million, even temporarily.  Keep in mind that the actual oustanding shares (the transfer agent number) is higher (I cannot tell you how much higher). 

In addition, revenue growth has apparently stopped at 17 million.  A far cry from the 50 million we were promised. 

Moreover, the "income" of 4 million I assure you is EBITDA and not net income.  The derivative charges will appear in Q4 to cause the net income to be nagative again.  Just another example of the CEO being less than honest.

I could go on and on.  I would not be a buyer here.

Quote from: buddjas1 on July 13, 2007, 08:36:11 AM
thanks for the comments.  I had to convince IEAM to issue the press release yesterday.  The transfer agent had leaked material yet non-public information yesterday about the outstanding shares.  Under such circumstances, IEAM had 24 hours to disclose publicly the information.  People were alredy trading based on that information.  I very nearly contacted the SEC. 

Regarding the statements made in the PR, I am disappointed because the CEO was caught in another lie.  He had promised in the last conference call not to let the outstanding shares exceed 13 million.  He did not mention 19 million, even temporarily.  Keep in mind that the actual oustanding shares (the transfer agent number) is higher (I cannot tell you how much higher). 

In addition, revenue growth has apparently stopped at 17 million.  A far cry from the 50 million we were promised. 

Moreover, the "income" of 4 million I assure you is EBITDA and not net income.  The derivative charges will appear in Q4 to cause the net income to be nagative again.  Just another example of the CEO being less than honest.

I could go on and on.  I would not be a buyer here.

Well seen buddjas1, you're really on top of this one ;)

Well, if "profits" is EBITDA and not "net income" that completely changes my analysis (and it is misleading information out of the company). And if the man has been lying ... well, that doesn't bode well for the share price.

IEAM is truly a complex story, it looks cheap, but the share count keeps rising. And that guy on CNBC crying "IEAM at $4 times earnings" ... I didn't like that, it looks like he was paid to say it on TV.

I wish I knew more, but I don't know ... anyway, there are simpler things that are very attractive outthere, I agree with you buddjas1, not the safest idea to buy now. Thanks for your valuable input, good luck.

Remember the guy (Stephen J. Massocca) on CNBC that was inaccurate and stated that IEAM traded at 4 times earnings (impossible with negative GAAP net income):

"The Order finds that PGE defrauded certain customers by secretly double-charging them for stock trades.
***The Order further finds that Massocca, 47, of  San  Francisco,  authorized PGE's unlawful conduct.
***The Commission's Order requires PGE to  undertake  certain  compliance reforms,  and  requires  PGE,  Massocca  and  Katz  to  pay  penalties of $425,000, $75,000 and $20,000,  respectively."

http://www.sec.gov/news/digest/2007/dig012307.txt

Here's a little about our beloved CEO, John Mazutto, and a prior business venture:

"Strupp and Mazutto bought the brewery from the Stroh Brewery Co. for $10.5 million in November 1999 and renamed it the City Brewery, its original name when founded by Gottlieb Heileman and John Gund back in 1858."

Less then a year later:

"Owners Jim Strupp and John Mazzuto lost control of the brewery last month after a judge found the brewery in default on a $4.5 million loan to Congress Financial Corp. and ordered a foreclosure. La Crosse attorney George Parke III took possession of the premises and oversees the operation as receiver."

http://findarticles.com/p/articles/mi_m3469/is_38_51/ai_66307255

In addition, for those with access to PACER, check out:

U.S. Bankruptcy Court
Southern District of New York (Manhattan)
Bankruptcy Petition #: 02-15586-rdd

just FYI:
I have switched my money from IEAM to IMMR.

good luck, IEAM is now just on my watchlist

cheers
Oliver

Quote from: la-onda on July 17, 2007, 09:45:23 AM
just FYI:
I have switched my money from IEAM to IMMR.

good luck, IEAM is now just on my watchlist

cheers
Oliver

I cannot blame you.  I'm stuck, though.  As long as Pike and Guardian hold their shares, there is a chance for recovery. 

"Owners Jim Strupp and John Mazzuto lost control of the brewery last month after a judge found the brewery in default on a $4.5 million loan to Congress Financial Corp. and ordered a foreclosure. La Crosse attorney George Parke III took possession of the premises and oversees the operation as receiver."

I found that the brewery was purchased from Mazzuto in 2000 by 12 investors for 9 million dollars:  http://www.redorbit.com/news/business/545001/city_brewery_owners_the_brewery_is_doing_well/index.html

Also, in 2005 Mazzuto was interviewed by the Christian Radio network.  This makes me think that he may be on the 'level' and I am not so sure that I want to believe some of the accusations that are being voiced.

I will keep researching and search for anything under the name 'Mazzuto'. I still have 3000 shares... OUCH

Quote from: brandyjoco on July 17, 2007, 05:36:04 PM
I found that the brewery was purchased from Mazzuto in 2000 by 12 investors for 9 million dollars:  http://www.redorbit.com/news/business/545001/city_brewery_owners_the_brewery_is_doing_well/index.html

Your article states:

"A group of 12 investors bought the company's assets from New York investors Jim Strupp and John Mazzuto in 2000. Strupp and Mazzuto bought the former G. Heileman Brewery in 1999 and renamed it City Brewery. It ran into financial trouble under Strupp and Mazzuto but became successful under the 12 investors."

So it was a good business, Mazutto just could not run it.

fyi:
Insider Sale:
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=5054483

:-[ :-[

chart:

Bristol is not an insider.  Rather, Bristol received a ton of convertible notes in connection with prior fund-raising.  The Form 144, to which you refer, simply reflects the conversion of these notes into shares and the subsequent sale of those shares.  The last selling occured on July 3.

This is not a Form 4 noting "insider selling."

Come on la-onda (gotta help me out here).

Quote from: buddjas1 on July 18, 2007, 01:18:04 PM
Bristol is not an insider.  Rather, Bristol received a ton of convertible notes in connection with prior fund-raising.  The Form 144, to which you refer, simply reflects the conversion of these notes into shares and the subsequent sale of those shares.  The last selling occured on July 3.

This is not a Form 4 noting "insider selling."

Come on la-onda (gotta help me out here).

buddjas1, I was misleaded by the topic from knobias, I apologize.
what a disappointing chart:

I got IEAM to clarify the "earnings" 4 million that misled everyone. 

http://biz.yahoo.com/bw/070720/20070720005241.html?.v=1

By the way, IEAM replaced Mazzuto as President.  He now is only CEO and appears to have only a figure head role.

I imagine that Pike threatened to replace the whole Board of Directors, unless they took this action.

I got IEAM to clarify the "earnings" 4 million that misled everyone.

Wow - how are you able to contact them? do you know them?

No, I just called IR and told IR that the statement was misleading and told IR to issue a correction.  Dow Jones was actually reporting the $4 million in "earnings" as guidance of "net income."  So, IEAM did in fact need to issue clarification.  I'm sure that I was not the only person to let IR know of the problem.

Changed Ticker Symbol.......

"IEAME" is no longer valid. It has changed to IEAM. 

Which you all most likely already knew, but we will make note here
and in the Thread Title....... ;)


Here is today's closing chart while I'm in this thread.......

When is that 25 million dollar buyback going to start?   Today sure would be a good day. 

No kidding.  If 4 breaks, IEAM could see $2.85 and retest 1 year lows.  The $1s are not out the question.  It's amazing what lying to stockholders will do to a stock.

I should've pulled all out.  I thought they would start buying some back and it least stop the free-fall.  Anybody heard anything? 

still invested ?

Industrial Enterprises to Host Conference Call September 6, 2007
Wednesday, August 29, 2007 11:23ET

NEW YORK, Aug 29, 2007 (BUSINESS WIRE) -- Industrial Enterprises of America, Inc. (NASDAQ: IEAM), a specialty automotive aftermarket supplier, today announced that the Company will host a conference call on Thursday, September 6, 2007 at 9 a.m. During the call, Dan Redmond, President, will review the Company's operating plan for the remainder of 2007, and John Mazzuto, Chief Executive Officer, will provide an update with regard to the Company's capital structure, share repurchase program, new credit facilities, and CFO search. The call will also include a question and answer period.

Yep still here, I took a big loss on some of my shares, but I've still got a bunch in at 4.79.

I saw that pop at the end of the day Friday.  I bet they are finally starting the buyback.

I'll be out on this run if there is any hint of bad news or lack of honesty in the conference call.  Too much shinanigans going on. 

Anyone else still holding on?

I'm also still holding hoping to cut muy loss

I am still in, as well, hoping to break even eventually. 

Well, I don't know if you guys listened to the conference call, but the fact that the stock didn't move much should explain how it went. 

A couple things I noted.

1.  More shares oustanding, but plans in works to bring it down to 14 mill.

2.  China problems

3.  Some big purchase/deal might happen  (3 million shares of stock checked out for it), ,but now deal is in question and we don't know if it will happen or not. 

All in all, I felt it was pretty much a "no significant news" conference call, which in itself is a disappointment. 

I'm going to hang around because I can't see how this can go lower, but of course I said that at 4.7 as well. 

Yah, pretty much a non-eventful conference call.  IEAM will use the $15 million new credit line to buy back shares.  I bet IEAM uses the bulk of the $20 million credit line to bail out Pike, in one large buy back. 

Been a good week for the share price.  No real news except the CFO, but I find it hard to believe it is going up because of that. 

Anybody have any ideas why the up tick and what's up?  Maybe trading on the Nasdaq is finally paying off.   

http://biz.yahoo.com/bw/070927/20070927005578.html?.v=1

Seriously, how hard could it be to file a SEC report on time.  IEAM had 90 days to write a simple 10K.  These guys are a joke.

Notice that IEAM has not bought back shares, as promised, but only "contracted" to do so.  More promises to be broken.

Well, I finally lost my patience and got out.  With my luck it will probably go up now so hopefully everyone else will end in the black.

I'm just sick and tired of being mislead by management.   Their latest press release with the delay tells me that it is going to be bad news again.  Plus saying in their announcement that they need to hold back 6mill for clearing lines and cutting staff?  What have they been doing the last 6 months? and now they need the money?  sounds like shinanigans. 

I think the numbers are going to disappoint again, but they will twist it to be positive by announcing something new.

I could be wrong and this time they really have hit bottom, or it could just be a continuation of the pattern of disappointment.   

Anyway, I'll continue to follow and if it looks like the tide is turning I"ll get back in.  Goodluck everyone.   

I cannot blame you.  I am too far underwater to sell.

You should forward your comments to IR.  The BOD may be inclined to get rid of Mazzutto once and for all.  Everything he says is questionable.

JDM smoothtalked another major buyer

http://www.sec.gov/Archives/edgar/data/1059677/000094366307000565/sc13gironwoodindustr.htm

1,928,941 shares for Ironwood Investment Management, LLC.

Ironwood pretends it owns 14.5% of the shares.  That would be true only if there were 13,302,351 shares, which we all know was about half of the stock transfer agent number only several weeks ago.

What can we expect now considering this information???

Could you give me an explanation please

TIA

Pathetic.

http://biz.yahoo.com/pz/071015/128738.html

Industrial Enterprises to Review Accounting Practices
Monday October 15, 5:05 pm ET
Company Announces the Closing of New Credit Facility


NEW YORK, Oct. 15, 2007 (PRIME NEWSWIRE) -- Industrial Enterprises of America, Inc. (NasdaqCM:IEAM - News), today announced that management is currently conducting a review of its accounting practices including a review of its revenue recognition policy regarding ``bill and hold'' transactions.
ADVERTISEMENT


Industrial Enterprises' management is currently working to determine the most appropriate revenue recognition method to replace its prior ``bill and hold'' practice. A ``bill and hold'' transaction occurs when a company records a sale and gives ownership of the product to the customer, but actual delivery takes place in a later period. While a change in its revenue recognition policy would only affect the timing of recognition of certain revenue, management has determined that its previous policy needs further review. The company will provide updated information once it has completed an in-depth analysis of the most appropriate revenue recognition method.

Additionally, during the year-end review, management has determined that one of its supplier's is a variable interest entity (VIE). A VIE is an entity in which a company has a controlling financial interest. In this specific case, while neither the company nor any of its employees has any financial interest in the vendor, management has determined that because the company is this vendor's sole customer, under GAAP accounting, they are considered a VIE. The Company is reviewing the most appropriate treatment of this VIE, which may include the audit of the financials of the VIE and the consolidation of the financial statements of the VIE into the financial statements of the company.

Management is currently reviewing these changes with its audit committee and its independent auditors. If the revenue recognition policy changes or the VIE's financials need to be consolidated into the company's financials, then the company will need to amend its Quarterly Reports on Form 10-QSB for the quarters ending September 30, 2006, December 31, 2006 and March 31, 2007. Based on the above issues, the company will not be filing its delayed Annual Report on Form 10-KSB for the year ended June 30, 2007 until these matters have been resolved. The company will continue to update on the progress of the filing.

Also, in response to a Comment Letter from the Securities and Exchange Commission, the company will be amending its Annual Report on Form 10-KSB for the fiscal year ended June 30, 2006 to address comments on the accounting treatment on financing transactions with variable conversion prices for that fiscal year. Therefore, investors should not rely on the financial statements contained in the previously filed Annual Report on Form 10-KSB for the year ended June 30, 2006.

Dan Redmond, President and Chief Operating Officer, commented, ``New Chief Financial Officer, Jorge Yepes and I are committed to improving the financial reporting and transparency of the company. Since my arrival in April of this year, Industrial Enterprises has made numerous strides improving manufacturing efficiencies and operational controls. We are dedicated to restoring our financial transparency in the marketplace. I am confident the company has the right people in place to deliver consistent growth and measurable results.''

Industrial Enterprises also reports that the company has secured a revolving credit line of $5 million. The credit facility is an asset and receivable backed revolving line of credit and carries interest at LIBOR plus 2.00% or the Prime rate minus 0.25%. Assuming certain conditions are met the credit line will be reviewed for further increases by year end. The credit facility was done through Sovereign Bank.

According to Jorge Yepes, Chief Financial Officer of Industrial Enterprises, ``We are pleased to announce the closing of a new credit facility. The credit facility will provide us greater flexibility in managing our business and funding growth initiatives, and reduces our borrowing cost when compared to our previous credit line. A portion of the credit line will also be utilized to continue the company's previously announced stock buyback program. While we are disappointed that we will not be able to meet our filing extension, we are working diligently to ensure that our financial reports include improved financial disclosures and transparency.''

About Industrial Enterprises of America

Industrial Enterprises of America, Inc., headquartered in New York, NY, is an automotive aftermarket packager and supplier that specializes in the sale of anti-freeze, auto fluids, charcoal fluids, and other additives and chemicals. The Company has distinct proprietary brands that collectively serve the retail, professional and discount automotive aftermarket channels. For more information please visit http://www.ieam-inc.com.

Except for the historical information contained herein, the matters discussed in this press release may include forward-looking statements or information. All statements, other than statements of historical fact, including, without limitation, those with respect to the objectives, plans and strategies of Industrial Enterprises of America set forth herein and those preceded by or that include the words ``believes,'' ``expects,'' ``given,'' ``targets,'' ``intends,'' ``anticipates,'' ``plans,'' ``projects,'' ``forecasts'' or similar expressions, are forward-looking statements. Although the Company's management believes that such forward-looking statements are reasonable, it cannot guarantee that such expectations are, or will be, correct. These forward-looking statements involve a number of risks and uncertainties which could cause the Company's future results to differ materially from those anticipated, including: (i) the Company's history of ongoing operating losses; (ii) the overall marketplace and clients' usage of products, including demand therefore, the impact of competitive technologies, products and pricing, particularly given the substantially larger size and scale of certain competitors and potential competitors, control of expenses, and revenue generation by the acquisition of new customers; Other risks are detailed from time to time in the Company's 2006 Annual Report on Form 10-K, as amended, its Quarterly Reports on Form 10-QSB, and in its other Securities and Exchange Commission reports and statements. The Company assumes no obligation to update any of the information contained or referenced in this press release.



Contact:
          Industrial Enterprises of America
          David Zazoff
          212-505-5976


--------------------------------------------------------------------------------
Source: Industrial Enterprises of America, Inc.

holy moly  ??? :-X
IEAM: Accounting Issues Abound; Shares Plunge
Friday , November 09, 2007 16:24ET

Friday's session again saw the bears win again for the fourth day this week after Wachovia fueled the subprime fire by raising their loan loss provisions. The action was just another of the large banks to admit to over exposure to the risky mortgage market.

Technology names were experiencing some selling pressure as Qualcomm Inc. released some disappointing guidance for the coming months. Economic data released included the Michigan consumer index which fell further in the month to 75.0 from 80.9 in October.

Signs are pointing to a slowdown in many areas of the market. Some caused by the subprime and others unrelated, but for the time being, many equities aren't the place for investors looking for quick gains. Instead, long term investors should be looking for bargain buys after the recent pullbacks that might or might not continue in the near term.

One small cap name that could fit the bill is Industrial Enterprises of America Inc. (IEAM). The Company focuses on automotive aftermarket chemicals and oil and is a leading supplier in the space.

Through its wholly owned subsidiaries, the Company specializes in producing "Value Brands" within the automotive aftermarket. These value products include; motor oil, antifreeze, washer and brake fluids, lighter fluid and automotive additives and chemicals as well as refrigerant kits and fire suppressants. The Company's brands include: Phoenix, Nu-Energy, TMP, Unifide, and Pitt Penn.

According to the Automotive Aftermarket Industry Association (AAIA), "U.S. motor vehicle aftermarket sales grew by 5 percent last year to $267.6 Billion." And the Company had been growing their share of this market through organic means and acquisitions.

In May, the Company reported their third quarter revenue of $17.6 million as compared with $9.0 million for the same period in fiscal 2006. The increase in revenue over last year was partially due to the inclusion of the Pitt Penn Group, acquired January, 2006, and more importantly due to increased production capabilities. GAAP EPS was a loss of (47c) versus a loss of ($1.60). But some of the loss was due to an accounting change. The Company switched inventory accounting methods from the Average Cost Method to First in First Out. The latter has sometimes been used to prop up inventory and thus asset levels at the expense of accurate readings on the income and balance sheet. The Company also incurred approximately $9,300,000 in non-cash charges during the quarter.

Over the next few months, management changes arose from the appointment of Dan Redmond to COO and the hiring of Jorge Yepes as CFO due to Dennis O'Neill's incapacitation due to health.

In July, the Company reported an increase in share count due to convertible debt being converted, warrants being exercised, and other debt being paid with equity. The number of outstanding was noted as being 19 million but would be combated with an increased buyback program which was upped to $25 million.

Between that time and September, more organization changes began to take place causing accounting difficulties and the establishment of a reserve account to pay recent layoffs, litigation charges, and organization reconfigurations. The Company noted a delay in filing their 10-K.

In October, another accounting discrepancy arose, and the Company announced they were reviewing its accounting practices regarding revenue recognition practices regarding "bill and hold" transactions. Also noted was the review of past financial statements regarding the accounting treatment on financing transactions with variable conversion prices for 2006, hence management noted that their 10-KSB for 2006 should not be relied upon by investors. Again, management announced the continuation of share buybacks facilitated through a new revolving line of credit.

During this time frame from June to October, shares fell from the $5.40 range to $3.00 at the end of October. Then on Nov. 7th, the Company announced an increase in their reserve for current litigation by a large $9.5 million to $13.5 million, an admission of using non GAAP revenue recognition procedures regarding revenue recognition using the "Bill and Hold" techniques, a settlement of litigation by issuing additional shares and a $500 thousand cash payment, the reimbursement of litigation expense paid by CEO John Mazzuto with the additional issuance of shares and another admission that the expense wasn't recorded on the Company's financial statements.

The result was an increase in shares outstanding by 9 million to 26 million. Additionally, the Company announced that the stock buyback would still continue but at a "slow and consistent pace".

In another release on the same day, the Company announced the suspension of newly hired CFO, Jorge Yepes, and that the board would conduct an integrity review for possible violations of policies and procedures.

The announcements culminated in share depreciation from $6's in May to 67c for a Company with obvious accounting difficulties but one that did have growing revenues and EBITDA before the news. With a clean up of the accounting difficulties, a management re-focus on growing top and bottom lines, and a continuation and acceleration of their share buyback which would give investors a vote of confidence in the long term prospects for the name, and the name possibly becomes a cheap one to follow. Investors would be wise to watch.

WHAT ABOUT THIS ???


Nov 7 (Reuters) - Industrial Enterprises of America Inc (IEAM.O: Quote, Profile, Research) said it suspended Chief Financial Officer Jorge Yepes effective Nov. 6 to conduct an internal integrity review.

The review is being done to investigate possible violations of the company's policies and procedures, the supplier of automotive chemicals and motor oils said in a statement. (Reporting by Sreerupa Mitra in Bangalore; Editing by Gopakumar Warrier)

http://www.reuters.com/article/marketsNews/idUKWNAS121320071107?rpc=44

Finally some good news ...   

I'm thinking about getting back in, for a quick jump.  However, I''m going to wait until

1.  we know whether they are going to be delisted
2.  they finally release their year end numbers  (which have to be bad, I don't see anyway they can twist the numbers to be good). 

I called the firm doing the class action suit to see if I could get anymore information, but all I could do is leave a message and nobody has called me back.  What a sham.  Sorry for all those still holding. 
       

Press Release Source: Industrial Enterprises of America, Inc.


Industrial Enterprises Reaches Operational Milestone
Tuesday November 20, 9:30 am ET


NEW YORK, Nov. 20, 2007 (PRIME NEWSWIRE) -- Industrial Enterprises of America, Inc. (NasdaqCM:IEAM - News) announced today that under the leadership of President Dan Redmond, Industrial Enterprises of America reached an important operational milestone. During the week of November 5, 2007, the Company's Pitt Penn facility shipped approximately $1 million of finished goods and reported 100 percent on-time shipping.
ADVERTISEMENT


According to management, on-time shipping performance continues to improve due to significant changes in the Company's supply chain process and organization. During the fourth quarter of last fiscal year ended June 30, 2007, Pitt Penn averaged less than 70 percent on-time shipping to its customers. Over the last three months the Company has improved its shipping performance, averaging 90 percent on-time shipments while also reducing lead times. The Company expects to approach 95 percent on-time shipments by the end of December. Additionally, during October, Overall Equipment Effectiveness, a productivity metric, improved 5 percent from the previous month and continues on an upward trend. As the Company enters its heavy winter season, sales volume continues to increase.

According to Dan Redmond, President and Chief Operational Officer of Industrial Enterprises, ``Customers have responded well to our operational improvements. We expect this improved performance, in addition to our ability to ship mixed truckload quantities given our broad product offering, to be key enablers for business growth. Production backlogs were dramatically reduced during our traditionally weak first quarter, positioning us for a solid winter season. As our volumes improve and Lean Manufacturing begins to take hold, significantly better productivity will be realized going forward. EMC, our aerosol packaging company, continues to perform up to its historically high standards.''

Came across this one today on my scan and looks ready for upward move
JMO
I have no position

looks like going up to 1.00

Yup:  Mazzuto is gone forever.  One down, three to go.

http://biz.yahoo.com/pz/080205/135667.html

However, new "interim" CEO is Mazzuto's crony and also to blame for the pump and dump. 

My prediction is that stock continues to decline until Redmond is named CEO, which I predict will be sometime in March.  We still need to clean out the Board of Directors, who are mostly Mazzuto cronies.  Perhaps the SEC will nudge things along a bit.

IEAM: Nasdaq to Delist Securities on February 20th
Tuesday , February 19, 2008 17:07ET


Industrial Enterprises of America, Inc. (IEAM) announced that the Nasdaq Hearings Panel has determined to delist the Company's securities and will suspend trading of the Company's securities on the Nasdaq stock market effective at the opening of trading on February 20, 2008.

The Company may request that the Nasdaq Listing and Hearing Review Council review the decision of the Panel. If the Listing Council determines to review this decision, it may affirm, modify, reverse, dismiss, or remand the decision to the Panel. The Company is considering whether to make such a request. However, such a request would not delay the Panel's determination to delist the Company's securities.

&

Industrial Enterprises Provides an Accounting and Operational Update
Tuesday , February 19, 2008 09:25ET

PITTSBURGH, Feb. 19, 2008 (PRIME NEWSWIRE) -- Industrial Enterprises of America, Inc. (Nasdaq:IEAM), an automotive aftermarket packager and supplier, announced today an accounting and operational update.

On February 5, 2008, the Company announced both the resignation of John D. Mazzuto as CEO, CFO and a member of the Board of Directors, as well as the appointment of James Margulies as interim CEO, CFO and a member of the Board of Directors. The Company is currently delinquent in its filings with the SEC and much of the information in the public domain as to operations and accounting needs to be addressed. While the Company has been attempting to address the most crucial issues of the filings, it has also been reviewing the current state of disclosures with a view toward clarifying the information in the public domain in order to ensure that all shareholders have the most current and accurate information the Company can provide.

With that in mind, the Company would like to answer some of the key questions that have been asked of the Company in the last six months:

DELAYED FILINGS: SOME BACKGROUND

The Company first announced that it would be delayed in its filings in October 2007. Initially, the questions about the Company's filings related to two issues: first, the SEC had made an inquiry with respect to private investments in the Company that had occurred prior to and during FY 2006 and the calculation of warrant issues; second, in its third quarter Form 10-QSB filed in May 2007 for the period ended March 31, 2007, the Company indicated that its accounting for "buy and hold transactions" which occurred in the December and March quarters needed to be reviewed.

As many shareholders know, with Mr. Margulies' departure as interim CFO as of December 3, 2006, John D. Mazzuto assumed the role of interim CFO. Shortly thereafter Dennis O'Neill was hired. He became ill and was unable to continue. Mr. Mazzuto again stepped in as CFO until Jorge Yepes was hired in September 2007. Mr. Yepes was suspended on November 7, 2007 pending an internal investigation. He has subsequently been terminated for cause. His termination was based solely on his actions.

Another contributing factor was the announcement on Friday, October 19, 2007 that Martin Weisberg, a then-partner of the Baker & McKenzie law firm was indicted by a grand jury for securities fraud. These actions occurred before Mr. Weisberg was admitted as a partner of Baker & McKenzie and were unrelated to the business of the Company. Mr. Weisberg has subsequently left Baker & McKenzie. Mr. Weisberg and Baker & McKenzie had been acting as securities counsel to the firm since 2005. In addition, as previously disclosed in a Form 8K filed February 1, 2005, Mr. Weisberg was a shareholder of EMC Corp. when it was purchased by IEAM on October 7, 2004. Additionally, Mr. Weisberg was serving as the outside general counsel to IEAM since at least some time in 2006, a fact that was not known to the current independent members of the Board of Directors.

However, as a result, Baker & McKenzie is no longer acting as securities counsel to the Company. The Company has also had to replace Baker & McKenzie in all actions where it has been representing the Company. Further, outside counsel to the Company is reviewing all transactions/actions involving Baker & McKenzie.

THE SUBSTANTIAL INCREASE IN SHARE COUNT ANNOUNCED IN THE JULY 12, 2007 PRESS RELEASE WAS A SURPRISE TO INVESTORS AND TO THE BOARD. THE VALIDITY OF THE ISSUANCE OF CERTAIN OF THOSE SHARES IS NOW UNDER REVIEW.

At the time of Mr. Margulies' departure as interim CFO, on December 3, 2006, the share count was approximately 10,000,000 shares outstanding. Since his departure as interim CFO it is apparent that the number of shares of the Company's common stock issued and outstanding has drastically increased. The Company has directed that a full investigation of this rise in the number of shares be conducted and that review has begun.

The Company's preliminary investigation indicates that the vast majority of the increase in the number of shares were properly and rightfully issued on the exercise of convertible debt and warrants related thereto; however additional shares appear to have been issued by the former CEO based upon authorization granted to him by the December 2004 Board of Directors of the company which consisted of Mr. Mazzuto, Crawford Shaw, and Michael Collyer, now deceased. The Company has begun a process of reviewing all of the underlying transactions of those additional issuances to determine whether or not they had a valid business purpose.

In addition to reviewing these issuances, the Company will also be reviewing the most recent financing wherein the Company entered into an agreement to issue up to 2 million shares to an investor group for the privilege of allowing them to give the Company a secured loan of $1.5 million in two tranches, subject to many conditions.

The disclosure of that financing was one of the primary reasons for the independent board members requesting that Mr. Margulies step in as interim CEO and CFO for the purpose of guiding the Company through its submission of its FY 2007 and FY 2008 securities filings.

THE COMPANY'S FINANCING NEEDS

The Company is also engaged in an active review of the Company's public disclosures and a reading of the conference call transcripts. As an initial matter, this review seems to indicate that the Company generated both positive cash flow but also had a need for a reasonable line of credit to support normal operations. As many of you may know, IEAM is a holding Company with 100% ownership of three subsidiaries: EMC, Pitt Penn, and Unifide. All borrowings have been done at the holding company level. The vast majority of the Company's revenues are generated in the Pitt Penn subsidiary. Because of the cancellation of indebtedness which occurred as part and parcel of Mr. Mazzuto's separation agreement, the holding company debt consists largely of a $5 million credit line issued by Sovereign Bank.

Prior to its acquisition in January 2006, Pitt Penn required a working capital line of approximately $8-11 million. While the audit of the Company's financials has not been completed, largely due to a final review of the aforementioned stock issuances, the Company does have audited and reliable numbers for the operating subsidiaries. Due to the concern about these various transactions, it is self-evident that the subsidiaries may be more creditworthy than the parent. The Company recently requested that its current lender, Sovereign Bank, consider splitting the current line into two separate lines at the Pitt Penn and EMC level who then would pay down the Company line. The Company has also requested an increase in the Pitt Penn line to the levels that it has historically required. Two additional banks have also been approached with the same request. Diligence packages were provided to the two banks last week.

In the interim, the Company is reviewing its current funding options including approaching Sovereign Bank with a request for a temporary line increase to help support the Pitt Penn operations. Additionally, the Company has identified a potential lender who may be willing to bridge the Company's additional cash needs on a mostly non-dilutive basis to current shareholders.

PRIOR PRESS STATEMENTS

In reviewing all of the press releases issued since July 1, 2007, it is appropriate that we clarify a number of statements:

* The Company's stock buyback program has been suspended. Since the end of FY 2006, the Company has purchased over 1,000,000 shares for a consideration of over $5,000,000.

* The Company has suspended both bulk sales and the "bill and hold" practice.

* With respect to the previously announced Variable Interest Entity issue, the Company has found that the entity involved is, in fact, a Variable Interest Entity. However an audit of the entity's financials is not necessary as management of the Company has determined that the entity is immaterial to the Company's financials.

* On October 15, 2007 the Company announced that the litigation reserve was increased to $13.5 million. That reserve was used principally, as previously disclosed, in the payments made to Trinity Bui and to the bulk sale purchasers.

CONCLUSION

The Company is turning a new page with a focus on running its business in a profitable manner. The Company will continue to focus on corporate governance issues. The Company's management is reviewing all transactions in preparation of the Company's upcoming securities filings. As part of that review the management of the Company will review all share issuance transactions. Finally, the Company is reviewing financing alternatives to add liquidity to the Pitt Penn subsidiary.