KTWO (.03x.033) reverse merger.
Our previous **SPECIAL ALERT** on HELP (Helpmate Robotics) garnered such a positive response from our readers that we have decided to continue this practice. (You could have purchased HELP on 11/12/2001 between $0.06-$0.07 and would have received a cash disbursement of $0.063/share about 2 months later . . . basically allowing you to own the shell stock for free. Some were lucky enough to purchase HELP below the disbursement amount, which meant that HELP paid YOU to own their stock!)
This new **SPECIAL ALERT** focuses on a company that never was Profiled on the ShellStockReview.com website, but is a shell company that has announced a reverse merger.
On 01/17/2002, KTWO (0.03 x 0.033) filed and 8k announcing they have entered into an Agreement and Plan of Merger with First Step Distribution Network, Inc., a California corporation. As a condition to the Merger, the Company is required to implement a 3 for 1 reverse split. From their web site - First Step Distribution Network is a profitable, debt-free corporation who’s proven expertise in licensing and distribution contracts has established strong relationships with major and pioneering companies in the last four years. Partners include Intel, Conexant, Exodus, Naviant, Toys 'R Us, Hewlett-Packard, Transenda, ChannelCommerce, and Ernst & Young. For more information, see KTWO.
Shareholder-Joseph Besecker
Joseph Besecker filed a 13G on 12/28/2001 stating that he owned 250, 000 shares (5.02%) of KTWO. Then, on 01/14/2002, he filed another 13G that he owned 230,000 shares (4.62%) of KTWO. It appears he may have sold 20,000 shares to get below the 5% “insider” level … but that is only my opinion.
Who is Joseph E. Besecker?
Joseph E. Besecker is the Chairman, President and CEO of Emerald Asset Management, Inc., parent company to Emerald Research and Emerald Advisers, Inc. Mr. Besecker founded Emerald in 1991. He has over fifteen years experience in the money management business, starting his career as an investment professional with Merrill Lynch and E.F. Hutton. Mr. Besecker has received national recognition for his work as an investment analyst, and appears frequently in the national financial media. He was named as the #2 "Home-Run Hitter" of 1996 by Institutional Investor magazine, and was invited to lecture at Oxford University in 1998, discussing his extensive work on the Year 2000 problem. He is a regular contributor to Bloomberg Television and appears frequently on CNBC and CNNfn. He has been quoted in various international media, including The Wall Street Journal, Institutional Investor, Fortune, Bloomberg Business News, The New York Times, USA Today, Associated Press, Dow Jones News Service, Standard & Poor's and MarketWatch. He has also appeared on National Business Radio and Financial News Network.
Mr. Besecker is the founder and a board member of Investor Broadcast Network, Inc. (IBN), an Internet financial media company formed in 1997. He serves frequently as host of IBN's RadioWallStreet™ Internet broadcasts.
Mr. Besecker serves as a National Trustee of the Leukemia Society of America and as President of the Board of Trustees of the Central Pennsylvania Chapter of the Leukemia Society. Mr. Besecker graduated from St. Joseph's University.
emeraldresearch.com
BUT…
KTWO traded 623,600 shares on Friday (2/15/2002). This equates to 12.5% of the total outstanding shares (4,982,699). But it only moved from $0.029 to $0.033 (13.70%). In my opinion, this does not make much sense. When most penny stocks trade 12.5% of the total outstanding shares, they usually move much more. The last time KTWO traded over 500,000 shares (10/05/2001) it moved from $0.023 to $0.035 (52%). On 01/04/2002, it traded 337,800 shares and moved from $0.03 to $0.05 (66.66%). So, this kind of movement could mean there is some stock dilution going on, or it could just mean the Market Makers have an inventory of stock to get rid of. There really is no way of telling. Most of the trades on Friday appeared to be buys at the ask price. I personally bought 97,000 shares at the asking price.
I have not been able to verify any of the information from the www.First-Step.com website. I have placed calls to KTWO and Joseph E. Besecker, but have not received a call back. I also emailed First Step Distribution, but have not received a response.
==== ShellStockReview.com DISCLAIMER ====
Not a recommendation to buy, sell, or hold KTWO.
The ShellStockReview.Com holds shares in KTWO purchased on the open market.
The ShellStockReview.Com has not received any compensation or shares to issue this ALERT on KTWO.
The ShellStockReview.Com is NOT a Registered Investment Advisor or a Broker/Dealer. All statements or expressions on this web site are only the opinion of ShellStockReview.Com and are not meant to be a solicitation or recommendation to buy, sell, or hold these stocks. As a reader of ShellStockReview.Com, you will be responsible for your own trading and investment decisions. We are not liable for any loss that you may incur on the stocks that we profile. The information contained herein is based upon sources we consider reliable, but is not guaranteed. Information is obtained from SEC reports, news releases, conversations with company representatives, and other sources of publicly available information. NOTE: we have seen information in a SEC report that did not accurately reflect the true condition of a company (See shellstockreview.com . The information contained on this web site is provided as an information service only and past performance of previously profiled companies does not guarantee the future success of any currently profiled company.
We DO NOT accept payment of any kind (cash, stock, goods, etc.) from the companies we profile or from their public relations firm.
From time to time, associates of ShellStockReview.Com may have positions on stocks that are profiled. We may profit in the event the shares of the profiled Company increase in value. These positions may be liquidated from time to time even after we have made positive comments regarding a profiled Company.
Investing in Shell Stocks is highly speculative and involves substantial risk. It is possible that you will lose your entire investment.
We suggest all readers of the ShellStockReview.com invest carefully and read about the Profiled Companies at the Securities and Exchange Commission website (http://www.sec.gov/ ). We also recommend that you read the SEC advisory to investors concerning Internet Stock Fraud (http://www.sec.gov/investor/pubs/cyberfraud.htm ).
shellstockreview.com |
