3SOF

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.
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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 
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.
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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.