More on CYAD

Financial information covering CyberAds, Inc. is actually very easy to find. According to Yahoo! Finance the company current business is to market the "XBoard, a personal watercraft that acts like a Jet Ski and behaves like a surfboard".

They have been losing $15,873,000 in 2002, $1,201,000 in 2003 and $521,000 in 2004 with sales of $8,326,000 in 2002, $4,197,000 in 2003, and $303,000 in 2004. I guess they survive by renegotiating debt and converting debt to stock.

EDGAR Online has all the filings from this Company since 8/3/2000.

It's not easy to find out about the real estate investment that was the basis for the $10 target mentioned in the email and in the analyst report. The 8K filing dated 1/23/2004 says:

Pursuant to the terms of an Assignment Agreement dated December 30, 2003, Kenneth D. Owen, a control person of the registrant, conveyed to Vineyards Investment, LLC, a Florida limited liability company, all of his right, title and interest in and to 22% of the membership interests in Rancho Heights, LLC, a California limited liability company. The registrant holds all of the membership interests in Vineyards, LLC.
Rancho Heights, LLC is the owner The Vineyards Country Club project in the Palm Springs area of Southern California. The Vineyard Country Club is a luxury motor home country club, which when completed will have 460 luxury motor home pads, each consisting of a Casita, 1 1/2 car garage, laundry room and full bathroom, for a total of 560 square feet, with larger options available for up to 1,100 square feet. Phase One of the development project will consist of 69 coach sites and Phase Two will add an additional 79 sites. There is also a golf course in the project. The Vineyards Country Club held its grand opening on November 14, 2003.
The Assignment Agreement was effective as of December 30, 2003.
Representatives of the registrant and Mr. Owen have agreed that the Board of Directors of the registrant and Mr. Owen must agree on the number of shares of common stock of the registrant to be issued to Mr. Owen as consideration for the subject assignment. In the unlikely event that the Board of Directors and Mr. Owen cannot agree, the assignment will be rescinded. A subsequent report will be filed upon the consummation of the assignment with respect to the consideration to be received by Mr. Owen.

However, the 8K filings dated 1/31/2005, says

The board of directors of the registrant has determined it to be in the best interests of the registrant and its shareholders that it rescind the Assignment Agreement dated December 30, 2003 which was previously described in the registrant's 8K reports dated January 23, 2004 and January 26, 2004, respectively.
The Assignment Agreement was subject to a determination as to the number of shares of the registrant's common stock would be issued to Mr. Kenneth D.Owen in consideration for the assignment. Given the current price of the registrant's common stock and the expected dilution to existing shareholders that would occur as a result of the issuance of a substantial number of shares of common stock to Mr. Owen, the directors have elected to rescind the transaction and not accept the assignment. The registrant will restate its financial statements to reflect the abandonment of its interest in the Vineyard's property.

It sounds complicated but it is actually quite simple. At the end of 2003 the Company intended to purchase 22% interest in a real estate development project by essentially paying the owner of the interest in Company stock. No real purchase was actually made, however, because the parties involved were still discussing. It is reasonable to expect that the stock price was playing a role in the discussion. However, the stock lost 95% of its value during 2004, making this real estate transaction impossible.

The chart below has the complete price history available.


Click on the chart to see it full-size.


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