LifeOne, Inc. (LONE) Message Board

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Microcap & Penny Stocks : LifeOne, Inc. (LONE)

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To: Bobb who wrote (1819)	9/16/2000 10:49:51 PM
From: Puck	Read Replies (1) of 1834

There's no excuse for any of us to make any of the mistakes we might have made in choosing to stay with our investment in LifeOne instead of bolting at the earliest sign of trouble. In my case that would have been when LifeOne failed to report its 2Q97 earnings in a timely fashion. I shall remind you that there could be one small nugget of value left. The trustees assistant did say that there was one reverse merger candidate that they were negotiating with. She did not, of course, comment when I asked her why the Communicata deal fell through. I owned stock in a company, Comptronix, that was liquidated in late 1996. Secured creditors received all their money back. Unsecured creditors received sixty cents on the dollar, and common shareholders got nothing. The shell company that remained after the bankruptcy was resolved continued to trade until early this year. At one point its bid-ask spread had fallen to a remarkable .001 ask: .0001 bid. On most days a small trade of 100 shares passed through. I always did wonder who would bother to make a trade worth less than a cent and still do. Maybe the market makers felt they had to maintain some minimal trading activity for regulatory reasons. I don't know. LifeOne stock can continue to trade for a long, long time yet unless the trustee bothers to have it delisted, of which there are currently no plans to do so. I reported my loss on Comptronix in the year it declared bankruptcy, as per IRS guidelines even though the stock continued to trade at prices less than a cent. I guessed that nothing material would occur to the holding company and that if I just continued to hold it that eventually the stock certificates would be cancelled. That appear to be the case. Even though the stock doesn't trade, it appears in my brokerage statement but the company's name has been replaced with a number. I guess that sooner or later it will just disappear. There's no market for it. I figured, like your father, that if I ever had occasion to sell the stock after writing it off that I would simply report a zero cost basis. That seems to me to be the most reasonable way to go. The odds of being questioned about any given entry on a Schedule D are so extraordinariliy low for most people that this seemed to be best approach. A revision on a long past return probably wouldn't be questioned but I think the odds would be much higher than with the first approach. I'll probably sell my LifeOne shares next year to offset some gains and be done with it.

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