Big boasts for a new company
With two RV dealerships under its acquisition belt, Charter Equities has distributed a brochure to potential investors suggesting they could generate a 1,000 percent return on their investment in Charter stock. I’ve uploaded a copy supplied by a reader which you can download by clicking on Charter Equities Bull Market Investor Alert.
In a publication distributed called the Bull Market Investor Alert, Charter Equities boldly claims “The Recreational Vehicle Industry Continues to Earn Record Revenues” — something that may come to the surprise of many RV manufacturers and suppliers going into the fourth quarter of 2007 scratching their heads and muttering “what happened?” Maybe someone should tell Charter that they are seeking investors in the recreation vehicle industry not in recreational vehicles.
“CEQI could be the hottest stock of the fall,” the publication claims. “Early investors could make huge profits with CEQI.”
Noting that Charter Equities has acquired Saddleback RV, “a $24 million per year Recreational Vehicle Dealership with plans to acquire additional dealerships by 2010 delivering potentially over $150 million per year in additional revenues.”
I certainly wish any company luck in their ability to grow a $24 million RV dealership into a $150 million enterprise in 26 months.
To add credibility to these outrageous claims, the document drops names of truly influential companies like Winnebago Industries, Fleetwood, Monaco and Thor Industries. The firm even manages to tie its own future success story to that of Warren Buffet’s acquisition of Forest River.
The full-color brochure highlights the wonderful accomplishments of many manufacturers and features RVIA-supplied lifestyle quotes from celebrities, sports heros and even Barack Obama. However, the point of Charter Equities apparently is to acquire RV dealerships. Wouldn’t it make more sense to promote the profitability of dealerships than the profitability of manufacturers?
“Are you seeing the potential? CEQI is trading at THIS LOW PRICE and has OVER $24 million per year in revenues. At THIS PRICE can you imagine where this could be in a few years if CEQI has over $150 million per year in revenues? OPPORTUNITY IS KNOCKING! CALL YOUR BROKER AND PICK UP SOME SHARES TODAY!! A $20,000 investment could easily be worth $100,000 in a very short period of time. You could take your profits and buy your own Recreational Vehicle.”
I checked. The stock is trading today at 30 cents per share. So, yes, it would be a good deal.
In the past couple of months, my inbox has overflowed with ridiculous offers from various Chinese companies trading stock for pennies, but poised for immediate growth. I never thought I’d see the same tactics applied to companies in this industry.
For the record, I have attempted to contact Charter Equities several times to meet with them when I’m in Phoenix next month. Apparently, they are too busy scrounging up investors for the Recreational Vehicle Industry and laying the groundwork for HUGE PROFITS to return my call.
October 18th, 2007 at 9:42 am
Bob’s comments well received, but, we didn’t need all that disclaimer. The fact that this is a Penny Stock on Pink Sheets tells it all! Why I think they “have a chance” at growing their company is because unlike Freedom Roads who steps up and buys the dealerships outright and retains the owner as an operator; Charter needs to “buy” with some cash and some stock retaining the former “owner” as the operator as well. Freedom Roads has stated they already have a “operator” problem. Charter will not because they have to keep working, hard, to get their payout from the stock value…more if it goes up dramatically. P.S. I have no interest in Charter nor do I know any of the people involved. I guess I’m just attracted to the underdog at times.
October 17th, 2007 at 9:27 pm
I don’t want to rain on E.T.’s parade, but let’s read the fine print on this one. Simply go to the bottom of PG-7 and that’s all you have to read to find out a lot about this company.
From their own brochure come such words of wisdom (read: warning)as:
BMIA is not a registered financial advisory.
This is not an analysis of CEQI’s financial position or operation.
BMIA is a paid advertisement.
Penny stocks may be suitable only for those investors who can afford to lose all of their investment capital.
The publishers of this brochure were compensated in the amount of three million free trading shares for various fees and costs for publishing and distribution.
The flyer was paid for by a third party shareholder,not by CEQI.
These guys should be embarrassed to even mention this company in the same breadth as Winnebago, Monaco and Thor. And don’t forget, Warren Buffett purchased a real company, with real people that made real profits. Pete Liegl and Mr. Buffett could teach these guys a few things about running a business!
October 17th, 2007 at 4:00 pm
I never laught at anyone with the “get up” to venture out and make a buck. I started with thirty bucks and made a TON, and, I went into the RV business in 1979…they laughed at me too. I think the industry is ripe for consolidation and Charter isn’t the first to see the carrot. Freedom Roads LLC out of Chicago already has a head start with some 58 dealerships, Campers World and a Magazine under their belt. All private money, so you and I won’t be able to buy in. Charter needs your money and is offering stock and a slice of the pie. If they are sucessful they could deliver on the big promise. I think it is doable and I *might* invest a few bucks after a bit more study…(DD). Of all I read so far I like the fact that one of the principals is a student of some fifteen years of the Spader 20 Group.
I’ve been there and it is a big plus. One more thing I think…one of these “consolidators” will grow to the point where they will own a good number of dealerships and will move to buy Winnebago to gain control (not ownership) of about 325 additional dealerships via a franchise offering. I’d buy some WGO stock right now as well.
October 17th, 2007 at 3:38 pm
I can see Steve Adams and Marcus Lemonis rolling on the floor laughing after reading this literary masterpiece that must have people lining up around the block to buy CEQI stock!
I’ll bet CEQI will have the largest booth in Louisville this year with all this potential!
October 17th, 2007 at 11:52 am
Whoa, what a beautiful highschool project…are they serious? Gosh, if Obama is going on vacation in an RV right after the convention, I’m surely going to invest in this “Recreation(al) Vehicle Industry”.
You can read more about this “sophmoric” effort by Charter if you read their business plan…well, I guess it’s a business plan. Here is that link: http://charterequitiesgroup.com/uploads/CharterBusinessPlan__2_.doc
Happy reading
Jimmy