MGCN update: 12/6/99
MGCN is now temporarily moved to the pink sheets, until the SEC gets
around to reviewing the latest round of info submissions. MGCN has a
lawyer working full time to expedite this process, but basically
there is little more that MGCN can do, other than wait for the SEC.
There is no telling how long the SEC will take. MGCN could be
relisted tomorrow, or next week, or any time.
The trading status of MGCN's stock is virtually irrelevant for the
vendors and agents that MGCN deals with - all they care about is the
operation of the company. Tom Lavin claims that, "The operational
business of MegaChain.com is proceeding satisfactorily along the
course documented in the Company business plan and is largely
unencumbered by the efforts required to achieve ?fully reporting
status? on the public side."
The business plan calls for launching by year end. However, it is my
personal belief that megachain will not launch until the SEC issues
are resolved. I believe this is because the goal of having a single
big launch (instead of slowly bringing business on line) is to call
attention to the firm, publicity for potential stockholders as well
as for potential vendors and agents. That publicity, while fine for
the primary recipients (vendors and agents), will be wasted on
potential stockholders if it happens while MGCN is still under the
pink sheet cloud. Note this is just my own opinion here - MGCN's
official stance is that the launch and the SEC status are unrelated.
Launching by year end and launching after being relisted should both
be possible. The issues remaining for the SEC to sign off on are not
huge, and MGCN believes it has provided the SEC with all the
necessary documentation that is required. However, there is no
guarantee about this time frame. It is my belief that if relisting
takes more than month, then the launch will not happen this quarter.
If you believe in the company's business model (and I do), then you
should be willing to hold for as long as it takes, and even take
advantage of the very low stock price that goes with being on the
pink sheets, by buying more. Delisting has no effect on the
soundness of the business model. If you do not believe in the
company's business model, then you should have sold a long time ago,
but at this point you might as well hold and wait for the price pop
that will come from relisting.
signed,
Blue Voodoo |
