EYII.OB

[la-onda]

interesting comments from Agracom board:

http://www.agoracom.com/nonmemforum/msgreview.asp?id=428256&refid=428254&orig=428254

EYI is not the manufacturing end of this deal. That is HydroFlo's end of the court. How can EYI comment on another company's performance? Let me give you a rundown, as I see it. It is all there in the filings and PR's, you just have to piece the process together.

1.CEIEC can not order until the product is properly registered in China.
2.CEIEC, per the contract, is responsible for getting the registration process complete. That process requires samples from the manufacturer (HYRF). HYRF changed manufacturers somewhere between the LOI and the signing of the contract.
3.CEIEC could not start the registration ball rolling without samples.
4.EYI delivered those samples last week, just as soon as they received them.They can not produce them out of thin air. They must wait for the manufacturer to provide them.
5.Now CEIEC can start the registration process which was delayed because CEIEC just received the samples to accompany the registration process.
6.As soon as the product is legally registered in China, CEIEC will be able to place orders.( I can't imagine they would until the product is registered).
7.CEIEC is runby the Chinese government. The same Chinese government is registering the product...that's good!

Summary:
The delays are caused by the manufacturer, probably due to the fact that it was changed mid stream from WAL to a Chinese company. In any event, as today's PR clearly states, the circumstances are beyond EYI's control. They and CEIEC could not get the product legally registered until they recieved the samples FROM THE MANUFACTURER, ok? It's all there , you just have to see it and put two and two together.


any comments on this statement??

[starfire]

I think the PPS will start picking up steam come November. the PR clearly states that CEIEC is committed to completeing the registration process as soon as possible. I see this as a courting process. To do business with China takes a long time. But with Eliza Fung there this should quicken. The bad news is the obstacles have popped up. But the good news is that that CEIES is moving forward. I am expecting them to wrap up before Dec 2nd!

[GodisKing]

Although Agora states that EYI is not at fault for the delay.  I don't hold them blameless.  I am sure it was communicated well in advance that there would be a delay. They could have communicated that to their shareholders much earlier.

Based on how the sec filing was written I knew something was up.  In filing they repriced the options and then stated that it would be available to be exercise 60 days from October 10.  I was wondering why that was.  Now I know why.  

The other thing that I find troubling is that the Chinese government has so much control over CEIEC.  

I do feel that there can be some success but I feel there are many variables that could cause problems down the road.  This penny stock will probably not accelerate as quickly as everyone would like but will probably see some price appreciation in the first half of 2006.

Anyone thoughts?

[basonista]

interesting comments from Agracom board:

http://www.agoracom.com/nonmemforum/msgreview.asp?id=428256&refid=428254&orig=428254

EYI is not the manufacturing end of this deal. That is HydroFlo's end of the court. How can EYI comment on another company's performance? Let me give you a rundown, as I see it. It is all there in the filings and PR's, you just have to piece the process together.

1.CEIEC can not order until the product is properly registered in China.
2.CEIEC, per the contract, is responsible for getting the registration process complete. That process requires samples from the manufacturer (HYRF). HYRF changed manufacturers somewhere between the LOI and the signing of the contract.
3.CEIEC could not start the registration ball rolling without samples.
4.EYI delivered those samples last week, just as soon as they received them.They can not produce them out of thin air. They must wait for the manufacturer to provide them.
5.Now CEIEC can start the registration process which was delayed because CEIEC just received the samples to accompany the registration process.
6.As soon as the product is legally registered in China, CEIEC will be able to place orders.( I can't imagine they would until the product is registered).
7.CEIEC is runby the Chinese government. The same Chinese government is registering the product...that's good!

Summary:
The delays are caused by the manufacturer, probably due to the fact that it was changed mid stream from WAL to a Chinese company. In any event, as today's PR clearly states, the circumstances are beyond EYI's control. They and CEIEC could not get the product legally registered until they recieved the samples FROM THE MANUFACTURER, ok? It's all there , you just have to see it and put two and two together.


any comments on this statement??

I can't speak for the process of selling a product in China so can't comment on a lot of these items.  I do know the process of doing business though.  If I were trying to secure new business that had the potential of increasing my inflow of cash as much as the deal with CEIEC does, I would be pulling product out of every orifice available (if you know what I mean ) to get it into the customers hands.  It is my understanding that both Hydroflo and EYI have already been selling the Code Blue products so product availability isn't an issue.  Hell, this stuff is available on Ebay!  And they couldn't get it into CEIEC's hands so they can do some paperwork on it?!?

There are always obstacles to doing business - some you know about beforehand and some you don't.  It's not like this process that EYI and CEIEC are going through is pioneering in any way.  If CEIEC is truly as big as people say then they know what has to be done to do business with a foreign company.  Customs delays can certainly happen, especially to a country like China but to use the excuse of national holidays reeks.  Unless they take 6 months off per year. 

All of this has created great suspicion in my mind causing me to sell out this morning.  I will look to promises actually being fulfilled and preconceived plans being implemented as planned before getting back in.

[nberski]

Strike one = dilution
strike two = misinformation ?
strike three = - - - - - - - - fill in the blank_________________
or
Is it a hit?
A ball?
I would even take a bean ball to the head  if it would get me on base.

I have a lot of this at .11


                       

[Rip]

Spoke to Jennifer at EYII. She said that for legal reasons she could not disclose specifics about the  58,000,000 shares or how the money was used. But she did say that it has been publicly disclosed that shares issued for the Cornell financing would be put into escrow and Cornell would not get the shares unless and to the extent that EYII uses the financing. She said that all would be disclosed in the November 14th 10Q report.

I asked if the increase to one billion shares was to give the directors 500,000,000 shares and she said absolutely not. She said it is just a financing option if such option is needed in the future.

To conclude I expect that the 58,000,000 went into escrow and some of the Cornell financing has been used to finance operations but significantly less than 58,000,000 shares worth. EYII's payables can be financed in part with cash flow from ongoing sales/receivables. Further 58,000,000 shares at present prices would be worth over $4,000,000. EYII is not burning money at that rate and therefore would have no need to access $4,000,000 of financing.

If management truly believes that the shares are unvalued they will use as little of the financing as possible. This would be consistent with the stock option incentives that management has as well.

[starfire]

I can't see why people are talking of dilution when in reality the A/S has been requested to increase to 1 billion by shareholder approval. Those of you who dissapprove vote against it. Anyways it is not a done deal. Jay owns only 42% and Dori owns less than 1%. And the 1B A/S is subject to share holder approval! If 1 B bothers you, you should be bothered by HYRF's 500million A/S. I am sure quite a few of you invested in HYRF as well. Hmmmmmmm beats me! GLTA

[fill_the_gap]

Last I checked they had over 51 percent insider ownership.  Someone posted the link last week. 

Please explain the large volume selloff on any advance if the 58 million are in escrow.

That would be even worse.  Imagine when shares are available to sell.  If not the 58 million shares, then why so much selling pressure ?  That is not good in itself.

[Rip]

I do not think they are all in escrow but likely a lot is. I expect that Cornell has been hammering the bid with perhaps 10,000,000 shares (which would provide approximately $1,000,000 to EYII for inventory and their ongoing cash deficit of $500k+ per quarter, this is pure speculation, we really need to see the 10Q) but as well there are people who bought this company at a much lower price than us who might want to take profits and there have been planned sales going through by insiders. Within three weeks we will get more answers from the 10Q.

[Prfsr Hal]

The delay in the process and the woefully inadequate explanation for it is an example of exactly what I've been describing that I feared. There are no straight lines in Chinese business, and when we westerners expect A to lead directly to B, we are always sadly mistaken.  We believe our desire to know and our outrage at not knowing will somehow lead to out being better informed.  Don't count on it. 

I'm still holding my shares but mire and more they feel like a garbage bag tied around my throat.

Prfsr Hal

[GodisKing]

Found the note below at the Agora website.


<< previous Message  Next Message >> 

Subject: Message To Shareholders From Jay Sargeant
From AGORAeyii
PostID 428463  On Tuesday, October 25, 2005 (EST) at 4:27:59 PM

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

Dear EYI Shareholders,

AGORA Investor Relations is pleased to present you with the following message from EYI Industries President and CEO, Mr. Jay Sargeant

We as a Company value our shareholders and as such would like to respond to the many questions we have had with respect to our Schedule 14A enclosing the Proxy Statement materials. The Company is holding its Annual General Meeting on December 2, 2005. At this meeting we are seeking shareholder approval on a proposed increase to the number of our authorized common stock. We are seeking to expand the base of shares to have the freedom to take advantage of narrow time windows with upside potential. It is not our intention to dilute the Company. As stated in our Schedule 14A, we presently do not have any agreement or other arrangement for any financing involving the issuance of shares of our common stock and there is no assurance we will enter into any equity financing arrangement. With the execution of our plans and expansion unfolds, we will use as little of these expanded shares to finance growth as possible.

Regards,
AGORA Investor Relations

[Prfsr Hal]

We will dilute to our heart's content but we won't call it dilution. 

[David Randolph]

It is getting harder and harder to defend EYII. MY initial thoughts were for the stock to trade between $0.06 and $0.08 for a couple of weeks and then start a rise towards values above $0.50.

It seems impossible now, but I think it is still possible, when those sales and revenues numbers start kicking in. Although there were two bad news in a row, I see good news on the horizon.

I invested $2,000 on this penny stock, $1,000 on the 1 million experience (what a bad start) and $1,000 here in the 3 Pennies on Fire Portfolio.

The $1,000 from the 1 million experience will never be sold (just at $0.32, or never), but here on the 3 Pennies on Fire I have a different responsibility.

I will wait some more time for clarification from the company, in the meantime I'll hold.

[GodisKing]

David,

Since EYII did not behave as you expected.  How soon do think it will be before it the stock price moves up? Or is too hard to figure based on the number of variables that can affect the stock price movement?  I believe a lot of people are loosing faith in this stock.  I am hanging on although it is painful to watch it drop from .10 to .059 in about two weeks. This is my 3rd penny stock purchase and I was told not to trade penny stocks.  I will still hold tight and hope by January 06 the price will have move north considerably.

Thanks

[puenthouse]

Ya for those of us that bought at .11, well this just stinks, but time will tell.  That is why it is so wise to only place 1,000 in on a penny so it can not ruin your portfolio.  Both pennies i owned GNBT and AMEP were killing me.  went down and down.  People bashed them and trashed them.  IF i would have stayed i would have 5 bagged both.  So I will wait this out.  Im going to play my thousand for gains only.  no point to sell now for 400 or less.