Conversion Solutions tweaks filing, swipes at bashers
Conversion Solutions Holdings Corp (U:CSHDE)
Shares Issued 103,135,657
Last Close CSHD 10/17/2006 $2.02
Friday October 20 2006 - Street Wire
by Lee M. Webb
Conversion Solutions Holdings Corp., a virtually penniless OTC Bulletin Board promotion, has tweaked its recently filed creative annual report with yet another amendment. Meanwhile, Rufus Paul Harris, the semi-literate chief executive officer of the purported multibillion-dollar company, is taking comical swipes at so-called "bashers."
As previously reported by Stockwatch, Conversion Solutions, the product of a recent merger between a grey sheet outfit and The FrontHaul Group Inc., an OTC-BB company, belatedly filed its creative, if deficient, cut-and-paste annual report on Oct. 16.
Within a few hours of filing the report, the company filed an amendment to the Form 10-KSB to clear up some confusion regarding the record date for a proposed forward split or dividend or, as Mr. Harris insists, reset issuance that will see the company cut another 618.8 million shares, if the cockamamie scheme proceeds.
The amended filing did not clear up any of the more serious issues, such as the complete absence of any financial information regarding the company's OTC-BB predecessor, FrontHaul.
Notwithstanding the glaring omissions, inconsistencies and notable sloppiness of Mr. Harris's cut-and-paste creation, the company's cult-like followers were in a tizzy over the filing and a subsequent fluffy news release claiming the company has approximately $7.3-billion in assets and a book value of $70.71 per share. (All amounts are in U.S. dollars.)
Given that the stock is struggling below $2 per share, it is clear that the market does not lend much credence to Mr. Harris's claims.
In any event, with the belated filing and a subsequent amendment submitted, the company's cult-like followers delightedly exclaimed that the "E" appended to the trading symbol flagging Conversion Solutions as delinquent would be removed.
As it turned out, while the U.S. Securities and Exchange Commission (SEC) seems oblivious to the promotion, at least as far as anyone can tell, the Nasdaq Stock Market, which oversees the OTC-BB, found at least some fault with the annual report.
Specifically, Nasdaq recognized that the sloppy cut-and-paste annual report did not include the required auditor's opinion letter. Consequently, the "E" remained appended to the company's stock symbol.
Conversion Solutions filed another amended 10-KSB on Oct. 19 to include the Sept. 28, 2006, opinion letter of accountant Thomas Benson. It is simply a copy of the letter that Mr. Benson signed when he audited the unimpressive financial statements of the grey sheet precursor to Conversion Solutions a few weeks ago.
It remains to be seen whether, in the absence of any apparent interest from the SEC, that letter will satisfy Nasdaq that Conversion Solutions has met its filing requirements.
The letter
Meanwhile, Mr. Harris, the grand pooh-bah of this purported multibillion-dollar promotion is warning Conversion Solutions shareholders to avoid a popular Internet stock chat site, InvestorsHub.com.
Mr. Harris and several of his fellow executives post to Internet chat sites, with HotStockMarket.com being the clear favourite. HotStockMarket.com is home to the company's most devoted cult-like followers, who brook no criticism of Conversion Solutions.
On InvestorsHub, however, the discussion is more freewheeling, though cheerleaders still outnumber the company's critics.
In any case, according to a letter addressed to "All Real shareholders" with the subject line "Professionalism," Mr. Harris thinks that all "real" shareholders of Conversion Solutions should stay away from InvestorsHub.
"It is my recommendation for any longs or real shareholder (sic) to reframe (sic) from reading or posting on Investors Hub," Mr. Harris says in the Oct. 19 letter.
"Investors Hub is a festering pool of frauds and bashers with alternate motives; and it is not friendly to any company," Mr. Harris continues.
"The owner and operators of this site will delete true statements from the CEO and leave false statements from convicted frauds and lies for all to read," the grand-poobah declares.
"If you continue to read Investors Hub do so at your own risk, please reframe (sic) from calling or sending any information post on IHUB to the corporations (sic) Officers," says Mr. Harris.
"This response is posted due to numinous (sic) calls and emails about IHUB fraudulent post," the chief executive officer claims.
"The above statements are fact and not my Opinion," Mr. Harris states.
"Again, it is my recommendation for any longs or real shareholder to reframe (sic) from reading or posting on Investors Hub due the activity of It Owner and operators," he advises again.
"If you choose to continue reading IHUB and want to report fraudulent posting please do so at Fraudonihub@chsd.us," Mr. Harris says after complaining about the "numinous" e-mails and asking investors to "reframe" from sending any information about posts to the company.
"At the appropriate time the corporation will seek by federal order from IHUB owners the IP addresses and registration information of IHUB posters," Mr. Harris declares before signing off with "GODSPEED."
It should be noted that English is not Mr. Harris's second language.
This assault on the "bashers" who post on Investors Hub delights the company's gullible cult-like followers who post on HotStockMarket.com, but Mr. Harris and his admirers may find that threatening legal action may simply draw more critical posters.
In any event, "longs and real shareholders" should be hoping that Mr. Harris's numeracy is more than a cut or two above his literacy.
Meanwhile, with the "E" still appended to its trading symbol, Conversion Solutions traded as low as $1.49 per share before rebounding after the filing of the latest amendment to the annual report to close at $1.85 on Oct. 19.
Stockwatch will continue to follow developments.
Comments regarding this article may be sent to lwebb@stockwatch.com.
(More information regarding Conversion Solutions Holdings Corp. is available in Stockwatch articles published on Oct. 13, 16 and 18, 2006.)
© 2006 Canjex Publishing Ltd. |
