AWESOME WATER BOYS ENGAGE LEGAL REPRESENTATION TO GET $3.6MILL

The great thing about our small country is that people can't help but spread the goss.

A Brisbane-area contact over the weekend let slip "Matt and Drew Edwards who sold Awesome Water to Allied Brands are very upset that they got screwed over and legal action is inevitable. They've engaged legal counsel to go after the $millions$ they were shortchanged by ABQ management with the "dud" shares. Apparently they have a recorded statement from the MD saying "at the rate we're growing you'll be getting shares worth $2".

Maybe it was supposed to be .02cents! That's where the shares are heading!

EDWARDS BOYS SLEEP, GET SCREWED OUT OF $3.6MILL BY GOLD COAST SLICK-O'S - CRY THEMSELVES TO SLEEP

In any event, this is about to spill leaving Allied with little way to run this company on their own. They can't even run an ice cream shoppe!

ABQ SHARE PRICE PLUMMET CONTINUES THIS MORNING.

ALLIED BRANDS LTD (ABQ) price continues to plummet this morning.

The system shows a massive number of "sell" orders in the queue - well over 1 million shares are hoping vainly for an "uptick" at which they can unload this dog on someone else.

ALLIED BRANDS LTD. (ABQ) MISSION STATEMENT

ABQ SHARES CONTINUE TO TANK AS REALISATION OF THEIR FINANCIAL CONDITION BECOMES CLEAR

As the new week starts, Allied Brands Ltd. (ABQ) shares continue their downward slide to oblivion.

One share holder wrote this past weekend "what good is all this information for those who have already seen their investments collapse"? Hopefully it will expose these dodgy directors and prevent them from using dishonest company tactics to exploit other franchisees and share investors.

We're also advised that the ASX has placed Allied Brands Ltd. on a watch list. Apparently standing by, watching investors money slip away.

AUSTRALIA STOCK MARKET SHOWS NO ONE INTERESTED IN ALLIED BRANDS ABQ SHARES ANYMORE

ONE WEEK HAS ELAPSED.

NOT ONE ALLIED BRANDS LTD (ABQ) SHARE TRADED ON THE ASX BY AUSTRALIAN INVESTORS (AKA SUCKERS).

MAYBE INVESTORS HAVE TIRED OF THE CONTINUED FALSE PROMISES FROM ALLIED BRANDS MANAGEMENT?

OR MAYBE INVESTORS ARE NOW ANGRY THAT MORE SHARES ARE BEING DIVERTED TO CEO SHANE RADBONE AFTER SUCH BAD COMPANY PERFORMANCE!

WHEN IS AN "INVITATION" A BAD THING?

Title of shareholder document sent to current share market LOSERS.

It would be more effective if it said "Invitation to Get Swine Flu", or "Invitation to Flush your Dough down the Dunny".

Judging from shareholder comments received to date, all have been STUNNED to discover the majority of these funds are to be used to prop up rapidly declining cash reserves, and a "mate's loan" to CEO Shane Radbone. And even more stunned that they aren't being told the full story about the massive debt carried by Villa & Hut!

"VILLA & HUT" CLONE "SAMSARA" FAILS - HUGE LOSSES, SCREWED FRANCHISEES

Villa & Hut competitor Samsara, a Gold Coast-based coffee shop and Indonesian homewares junk importer, has collapsed leaving very angry franchisees and huge debts.

THE ANNOUNCEMENT on the failure notes that "While the Samsara model includes Asian cafes, it typically relies on the importation of exotic Asian furniture and gifts from the ‘cheap and nasty' to unique beauty produced by masterful craftsmen sitting on dirt floors in third world countries."

SOUNDS EXACTLY LIKE VILLA & HUT!

Peter "Pinnochio" Graham (pictured above) has said that Villa & Hut would make $1.5million in profit the first year - so why would the founders sell out to Allied Brands for $1million? Normal business valuations would indicate Villa & Hut should sell for $6million to $7million. The whole deal smells dodgy, and Samsara portends the future for Villa & Hut.

These kinds of businesses are among the first to go when discretionary income is no longer available to their customers. Funny, but instead of overpriced coffees and junky Balinese furniture, people prefer to PAY THEIR RENT!

Founders are being investigated for "Trading While Insolvent". The aggressive investigation by the Rudd Government of franchisor companies "trading while insolvent" has likely put a chill thru the Allied Brands offices. These clever directors have given each general manager "full responsibility" for each of their brands. When the crash comes, they'll find that the fine print of their contracts makes THEM responsible for any ASIC issues, not the board.

Allied Brands Ltd. (ABQ) reported cash on hand in June of 08 of $4.2million, by December 31 this had over halved to $1.9million. Even more misleading however is their claim to have $3.4million in "assets held for sale" - in reality both new and repossessed shops, Baskin Robbins, CookieMan, Kenny's Cardiology, that are grossly overvalued and a huge cash drain on the company. ALL OF THEM are reported to be showing operational losses, with rents, employees, utilities, and other costs a giant cash vacuum on the Allied Brands balance sheet. And the shortage of product for no apparent reason can only be cash-flow related.

As their primary cash cows CookieMan and Baskin Robbins are now in their slow winter seasons, it's no wonder they're trying to raise more capital under the guise of their Villa & Hut acquisition. It would appear that Allied Brands could easily be out of cash by the end of the financial year without this emergency capital raising.

MAJOR FINANCIAL ADVISOR MDS AGREES - ALLIED BRANDS (ABQ) DUD INVESTMENT

Leading investment advisor MDS FINANCIAL GROUP has issued their guidance on the Allied Brands Ltd (ABQ) "Share Purchase Plan". Under this plan, most of the money is earmarked NOT for the rumoured distress-purchase of Villa & Hut, but instead they're shoring up Allied Brands quickly deteriorating cash position and providing a "mate's loan" of $750,000 at abusively favourable terms to non-performing CEO Shane Radbone.

Radbone is required to stump up not one dollar to purchase these shares, with other terms unrevealed by management.

As much of the Global Financial Crisis has been caused by public company directors and management "looting" the company to fill their own pockets, apparently Allied Brands hasn't learned the lesson of these shareholder issues. And in most cases these were public companies that justified their "looting" by claiming shareholders had seen increases in their investments. ABQ has shown no such increases, but just a slow, steady slide in share price alongside their declining cash balance.

MDS confirms Allied Brand's liquidity and company stability "poor". It also notes that it devalues the current 100 million+ shares by 17.5%. This after the company has worked hard to devalue the shares over the last two years. It's the ultimate in company greed and shareholder stupidity - get the existing suckers (sorry, INVESTORS) to stump up more money.

And franchisees have by far the largest stake in this company, a stake secured only by the fair and equitable operations of the company. Without franchisees, Allied Brands ceases to exist. And as franchisees continue to fail and ABQ either closes these shops or operates these loss-makers themselves (something they have proven time and time again they don't know how to do), the company moves closer to the brink of failure. In Brisbane? Look at the big mess the company has on its hands at New Farm!

The MDS report is HERE.