There seems to be some confusion over whether Everquest Financial has $100 million in revenue or profit.
Here is the quote from the official Press Release I received from the Gilmore campaign:
"5. As a result of sound management, Everquest is thriving and has earned $100 million in revenue for its shareholders."
Taking a look at the Gilmore website, it looks like the campaign has changed the language:
"5. As a result of sound management, Everquest is thriving and has earned a $100 million profit for its shareholders."
There is a big difference between "revenue" and "profit". It looks like the Gilmore campaign doesn't know the difference. They should.
So, lets say Everquest "earned" a $100 million in profit. This leads to several questions. Where is the evidence to support this figure? Surely the campaign didn't just make it up. What was the time frame in which this money was made? What is the current financial position of the company? In the face of Bear Sterns' collapse and the meltdown of the subprime mortgage market, is Everquest still making money?
In the end, it still comes down to the fact that this deal stinks. Bear Sterns wanted to unload bad investments to those that would buy shares of Everquest in the IPO. Fortunately, the IPO was called off.
Gilmore should have come clean in the beginning and washed his hands of this. Instead, he chose to defend Everquest. I hope Jim is ready to keep defending himself....Mark Warner is going to have a field day.