EYII.OB

[fill_the_gap]

Not true.  Work the numbers per quarter with the portion that Actually goes to EYII.  And if it were true, they would not try to authorize more than a 200 % increase in Authorized shares. 

Please provide examples of Cornell companies that do well over time.  The charts tell the story.  Feel free to post.  I will listen and evaluate if it makes sense. 

[fill_the_gap]

I personally have been burned by Cornell.

Check into this part of Cornell financing.

-  Companies are in dire need of cash and they come to Cornell
-  Cornell begins the bleeding out process in the issue of cash to the company
-  Cornell uses SEDA (Standby Equity Distribution Agreement)

The deals have NO FLOOR on conversions.  Cornell sells to market and makes money regardless.  This is their business.  They are not in the business for company appreciation.

And Cornell can short against the position !

Cornell is now under much SEC scrutiny.  Shareholders lose.

This is just some research after getting burned.  Never again with Cornell.

BTW.  If you sold today and regret it, buy back. It is around the same price.  Just presenting what was found to the group.  Nobody that sold got a price much higher than it is now anyway on a sale.  Just do not want to be the cause of any sale.  Do what you think is best for you.

[GodisKing]

Is Cornell a public company that SEC would have an interest in their company? If so, what is the ticker symbol. 

Thaks

[J.Livermore]

Cornell raised $50M to MOBL in April I think, and look the rise on MOBL shares after that.
I dont see Cornell as a problem, they provide a financing solution, and thats just what it is.

I'm buying tons of EYII on this deep ! 

[fill_the_gap]

To all,

The board is for opinion.  Please do not make decisions based on a post.
EYII may shoot way up, who knows.  But we all have been scratching our heads as to why it has not.  Now we know more.  But the public did not know this before and it did not sustain any rallies.

Either way, the facts about Cornell were presented.  And EYII did not move when HYRF shot up 1000 %.  Tells us something.  Now someone will have 3 times more to sell on any bullish move.  Did you not see how fast it would come back down on the recent rallies?  Not good.  This is not like AMEP.  Shares are not running out.  They are being added. 

I believe the shipment will take place.  But this is not much immediate money for EYII.  And they spend alot of money.  So do your homework.

Just presenting another angle to answer some of the reasons EYII has not followed HYRF.

But never buy based on a post.  Evaluate all of the facts and angles then trade the plan.

[Rip]

fill_the_gap. For the quarter ending June 30, 2005 EYII lost $475,000 from continuing operations (they took a hit for another $387 from discontinued operations). Therefore including the Hong Kong office expenses I am assuming they will lose $535,000 per quarter if nothing changes (these are estimates as the company is not providing enough info for more exact numbers). If the first China order comes through for 100,000 units  (see below) they will make 30% for filters or $210,000 (based on what has been posted on this site in the past). Further they have a sales force selling the product at a much higher price which should bring in further sales and positive cash flow. If the sales force cannot generate enough to get them to positive cash flow in the first quarter then with the increase in China sales in the second quarter they should be there.

Regarding issuing more shares they are doing what is necessary to survive until the cash flow begins. I do not like dilution but see this as short term bridge financing. Yes there is risk on the downside on this trade (I agree with you that Cornell can hammer a stock price) in the short run but the upside on this company is huge. The managers hold options and I am sure will be lining up alternative financing at better terms as soon as there is an indication that positive cash flow is coming. The sooner the better.

At present levels 10% dilution would raise about $1.6 million or enough for three quarters of negative cash flow. If I sell now I might be able to buy back and save myself a penny a share. But if positive refinancing news or China news or EYII sales force news comes out while I am waiting to buy back in, the stock will likely gap and I will be left in the station waving the train good bye.

For the 58 million shares issued they would have likely obtained about $5,000,000. I trust this was used to pay off debt which as of September 30th was likely $4.5 million (most of which was current liabilities) and buy some inventory. If in fact the $5,000,000 was used to pay off debts we now have a much healthier company from a balance sheet perspective. We will see when the financial statements come out.

I understand your grief from a past bad experience with Cornell and you may ultimately be shown to be right but at these levels this stock is easily a 10 bagger if CEIEC can execute well on the sales side (if they can get to the 2007 4th quarter sales level of 7.5 million units and maintain it as people buy replacement filters every month the after tax income from this deal alone would be roughly $45,000,000 per year). It appears that CEIEC is a large company that should know their market well and be able to execute.

(The above is based on limited published info, estimates and speculation. I believe EYII will do well but it is not guaranteed.)


Purchase Plan
     
Year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units          Total
2006   100,000     400,000     2,000,000   3,500,000 (filter)item  6,000,000
2007 4,500,000   5,500,000     6,500,000   7,500,000 (filter)item 24,000,000
Total: 30,000,000 Code Blue Water Filtration Systems

If they buy the filter for $7 (see at the bottom for this assumption) EYII makes $7*.3 equals $2.10 per unit. At 100,000 units this equals $700,000 of revenue and $210,000 of cash flow for the first quarter plus what their own sales force sells. It is possible that the sales force can get them to positive cash flow in the first quarter as EYII should make a lot more on sales from their own sales force than they do on the deeply discounted pricing that China gets. Even if the sales force cannot get them to positive cash flow in the first quarter they will likely be close and should be able to get better financing than Cornell, especially if they have already paid off their debt from the equity sales in August and September. The second quarter sales should rise from there as seen in the Purchase plan schedule above.

SCHEDULE "A" TO CHINA AGENCY AGREEMENT

CONFIDENTIAL PRICING SCHEDULE (in US Dollars)

ITEM
DESCRIPTION
PRICE

Filter
The Code Blue Water
Filtration System Water
Filter must contain
technology to remove:
nitrates, nitrites, arsenic
and other contaminants
from tap water. $7.00 per unit

Pitcher
The Code Blue Filtration
System Water Pitcher must
be a unit that is able to fit
the above filter to remove
the contaminants from tap
water. This unit must have
an appropriate reservoir to
hold the filtered water.
This pitcher must come in
a box with Code Blue
branded material. $13.00 per unit


6. If, in any year, CEIEC purchases fewer than two-thirds of the Code
Blue Water Filtration Systems specified in the Purchase Plan (i.e.
fewer than 4,000,000 in 2006, or fewer than 4,000,000 in 2007), it
will cease to have the exclusive agency rights granted in paragraph 1
hereof, but will continue to be non-exclusive agents of EYI.

[fill_the_gap]

Rip,

Nice post !  Applaud.

Time will tell. 

[Prfsr Hal]

Like I said.  These are cagey business people and not given to transparency and they keep chareholders on a need to know basis.  Not when WE need to know but when it suits them to reveal.

Mired in remorse but still holding.

Prfsr Hal

[fill_the_gap]

For the 58 million shares issued they would have likely obtained about $5,000,000. I trust this was used to pay off debt which as of September 30th was likely $4.5 million (most of which was current liabilities) and buy some inventory. If in fact the $5,000,000 was used to pay off debts we now have a much healthier company from a balance sheet perspective. We will see when the financial statements come out.

========================================================

It is also assumed that the millions of new shares issued the last quarter were sold to market in order to take care of debt.  Should be the case, but not assuming anything at this point.

I specifically e-mailed IR about the (company or debts paid with shares) being sold to market.  The reply was that no shares were sold to market or debts paid with shares.  So what is the 58 million from?

I had a large stake in the company.  The portion that bothers me the most is that they are not predictable.  They issued a PR about not having any PR a few weeks ago that send the stock down 40 % !!!  And this time, explaining the 58 million was used to pay debt (if the case) would have been more comforting than seeing it on Edgar.  Just tact.  The timing of the thing was poor without some kind of explanation.  Of course, they do not need to justify the share increase.  But all a part of building confidence with the shareholders. 

Most recently, Agora deletes any posts that do not hype EYII on their board.  And all calls to the company go to Agora.  Makes sense unless you truly want an answer for questions such as what just happened !!!  And also questions about their thoughts on a Reverse Split, etc.  Agora gives pat answers and deletes anything that goes beyond a surface question, imho.  Why the secrecy, who knows? 

EYII has to establish some value with the deal.  That assumes the debt is paid down and the Chinese get orders.  The deal can be cancelled at any time and exclusive rights is the penalty.

The concept and need is there.  Just wish that EYII could communicate more effectively.  Shipments are promised in October.  So next week may be key. 

[vic666]

ftg...u may speak directly to EYII's IR contact, Jennifer. i ain't sure why u keep lamenting that one cannot talk to EYII but only to agora...thats not the case, I've been able to talk with Jennifer, the IR lady for EYII (not agora) anytime I want to.

[Rip]

fill_ the_gap Thanks for the update from IR. I called Jennifer to ask her what was going on with the 58 million shares before posting but was not able to speak to her (she called back when I was not here). Will call her again on Monday. Have a good weekend.

[David Randolph]

Thanks for the great analysis from fill_the_gap and Rip 

Let me make a few remarks about EYII.OB:

1) There's no doubt the product (Code Blue) exists and the company has exclusive rights to sell it worldwide for the next 5 years.
2) HYRF.OB rose a lot because of buy orders coming from EYII.OB (HYRF.OB even changed production from a Swiss company to a Chinese one to meet increasing demand).
3) The product bought from HYRF.OB is being sold/will be sold in the near future.
4) Of course, the company needed money to pay HYRF.OB and other expenses, so it looks like it sold shares in the open market (the number of outstanding shares rose from «167,803,292 shares of common stock issued and outstanding as of August 19, 2005» to «226,259,804 shares of our common stock issued, outstanding, on record at October 10, 2005») or it paid debt with the the new 58 million issued. IR didn't explain what were these 58 million new shares for, it would be nice to hear Jennifer on this subject.
5) All bad news is out now. For the near future I see press releases about increasing sales and profits every quarter. I believe the only way is up from this level.

Curiously the stock held $0.072 on close, which is a short term support. Maybe, just maybe, Friday was the final washout and EYII.OB will build its way higher from this low point.

As fill_the_gap says, time will tell. I will continue holding EYII.OB for the foreseeable future.

[AussieTrader]

BURNABY, British Columbia, Oct. 24, 2005 (PRIMEZONE) -- EYI Industries Inc.
("EYI") (OTCBB: EYII), (http://www.stopdrinkingpoison.com), a marketer of
products that promote well-being and a healthy lifestyle, is pleased to announce
that Essentially Yours Industries (Hong Kong) ("EYI HK") President and CEO, Dori
O'Neill, arrived in Hong Kong to meet with top executives, Mr. Yu, Executive
Vice President, and Mr. Zhang Jiang, President and CEO of Guangzhou CEIEC
Enterprise (Group) Co. Ltd. ("CEIEC"). 
On Wednesday October 19, 2005, Mr. Dori O'Neill personally delivered six units
of the Code Blue(tm) water filtration system to CEIEC for review and testing.
Due to circumstances beyond EYI's control such as national holidays and customs
delays, the delivery of the units was held up. EYI is expecting its initial
order in 6-8 weeks. 
The result of this production delay means that the CEIEC can only now begin to
execute the registration process for the Code Blue(tm) water filtration system.
This will also mean that CEIEC will not place their first order in October as
they must wait until the initial registration and testing process has been
completed. 
Essentially Yours Industries (Hong Kong) President and CEO, Dori O'Neill
stated, "I had the pleasure of meeting with Mr. Yu and Mr. Zhang Jiang of CEIEC.
We came to an agreement on how we need to proceed with the registration process
and will work together towards having that process completed as soon as
possible." Mr. O'Neill added, "It was absolutely refreshing to see how committed
CEIEC is about the Code Blue project, and we look forward to building a secure
and prosperous relationship with CEIEC." 
To view a picture of the meeting held between CEIEC and EYI, please follow the
link provided: http://www.agoracom.com/images/ceiec.jpg 
This press release is available on the company's official online investor
relations site for investor commentary, feedback and questions. Investors are
asked to visit the EYI Industries IR hub located at
http://www.agoracom.com/IR/EYI Alternatively, investors can e-mail AGORA
Investor Relations directly at [email protected] 
About CEIEC (http://www.ceiec-sc.com) 
The CEIEC, located in South China, is the largest exporter and importer of
electronic products in China and was the first Chinese enterprise to establish
sales and cooperative relations with foreign brand name enterprises such as
Hitachi, Sharp, Mitsubishi, Panasonic, Siemens, Casio, Phillips,
Hewlett-Packard, LG and Samsung. Currently, the CEIEC is under the direction of
the Chinese government and has extensive business relations with nearly 100
countries and regions and imports/exports over US$ 1 billion in products every
year. 
About EYI (http://www.stopdrinkingpoison.com) 
EYI Industries Inc., through our subsidiary Essentially Yours Industries, Inc.
(EYI), markets products that promote health and well-being. Recently, EYI
launched a consumer product that removes arsenic and other contaminates to a
negligible level from drinking water. The portable water filtration product's
name is Code Blue(tm) and is exclusively provided to EYI. In addition, EYI sells
dietary supplements and personal care products. A large portion of our sales are
from CALORAD(r), a liquid protein supplement that has brought weight loss
benefits to our customers. More than 6 million bottles of CALORAD(r) have been
sold since EYI was founded in 1995. Our newest product, PROSOTEINE(r), is
experiencing similar success to CALORAD(r) and bringing our customers the
benefits of a natural energy drink

[starfire]

Though the delay in P.O was a dissappointment, I am still hopeful for a very eventful Thanks Giving! Both Jay and Dori are incented with stocks options that will expire 60 days from 10Oct 2005. I believe EYII is well p[sotioned to close the order by end of November, just in time for Vegas!

[fill_the_gap]

What prevents millions more shares from hitting the market with the delay?  They flat out lied to me on the phone about No more shares hitting the market over the last quarter.  And 58 million are now issued in front of our eyes with hopes of One Billion total soon authorized.

Sure, EYII has a value.  But the idea of a multi bagger is sure tainted with the dilution.  The delay certainly does not assist investor confidence as it was already on the rocks. 

The delay will now push up losses to next quarter and disrupt the numbers moving forward.

Long term it may work.  But the lack of shares on the ceiling will not be the reason.  Companies that do not tell the truth are not for me.  I will not be commenting here very often as my losses are realized and they cannot be trusted.  The most recent Agreement is already using ' Holidays ' as an excuse.  They did not have Chinese holidays before the Agreement ?