TFRY (was FRYA) Tasty Fries, Inc. Message Board

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Microcap & Penny Stocks : TFRY (was FRYA) Tasty Fries, Inc.

TFRY 0.00001000

0.0%

Mar 7 3:00 PM EST

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To: Terry Norman who wrote (414)	9/21/1996 9:26:00 PM
From: Alan Coccio	of 2405

As a matter of fact, I'll buy the remaining six million shares at 5-cents each! Nice thought but it just doesn't work that way. These shares are a form of barter. The company has no money yet they need marketing, advertising, PR and management. The only asset they have to pay for these things is a big bucket of stock. Unfortunately, the bucket is rapidly emptying. If, for instance, the marketing company wants $500,000 for a year's work, TFRY pays them in stock rather than cash. The marketing company is taking a gamble by taking the stock (it might crash overnight) so they want a little extra for taking the chance. They settle on a value of 5-cents per share. The marketing company PAYS TFRY for these shares. In this case they take 4-million shares and pay TFRY $200,000. They then sell them in the open market for $800,000 - assuming the price is 20-cents per share. Now everyone is happy. TFRY has $200,000 more dollars for their operation and the marketing company made more than they were willing to charge for their services. Great scenario except for the shareholders of the common stock. We get downward pressure on the price as the marketing company unloads their stock. Further, there are now more shares outstanding with a dilutive effect on any future earnings. You must realize that this company with 100-million shares outstanding and a share price of 20-cents has a market capitalization of $20-million. Is TFRY worth $20-million at this time? I think not. They've got to sell a boatload of french fry machines to get there. Or, THEY MUST BE BOUGHT OUT! A major corporation with the money to produce thousands upon thousands of these machines and the distribution network to go with it would be just what the doctor ordered. Would they pay TFRY as much as $20-million which means we still have a 20-cent stock? Interesting issues. All I'm hoping for is a few cents upward movement while the market makers take perverse pleasure in their manipulations of this stock. All the best to you Terry. I hope I have helped answer your question. Al

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