>Date: Tue, 23 Dec 1997 10:58:41 -0600
>Riley,
>
>In response to your request for input, I believe that the halt is
troubling. But, that being said, I don't think it has to be fatal or even
damaging in the end.
>
>Assuming the company is clean in all of this and hasn't lied to all of us
about the float and also assuming that trading resumes, I think that we can
still pull this off.
>
>Fundamentals- I think we all knew from calling the company that several
statements made in past filings were wrong, misleading or inconsistent
with Press Releases. For example, the boat, Ownership of facilities they
actually were leasing, not telling us that basically they were currently
not doing much if any business. These inconsistencies and possible lies
have always troubled me, but I thought that if the SEC kept trading going,
then the company must be clean. Especially since complaints from the nays
came pouring in months ago.
>
>I believe that the company has been broke for some time, has not been able
to pay bills or honor contracts, therefore they have had virtually no
business. Because of the short selling the stock has tanked and they
haven't been able to raise equity capital until this recent Asian placement
and loan.
>
>If the Asian money arrives on time and they can upgrade the water
facilities, fill back orders, restart their garment business, then maybe
fundamentally they will be OK and a good long term investment.
>
>Aside from a few phone calls, I have no way of knowing if Morgan, Breton
and Lori are telling the truth about any of this. They don't have a
stellar past when it comes to being truthful, but I will withhold judgement
until I get the facts from the 10-K and the SEC investigation. Therefore,
I think we will have to wait & see if there is any Fundamental reason to
stay in this stock.
>
>Squeeze- If your float numbers and your shares held in cert form numbers
are accurate, then Fundamental analysis is irrelevant. If trading resumes
and the numbers are correct, I think this halt may end up helping us. This
provides 14 tradeless days to do nothing but bombard our brokers with cert
requests. Also, hopefully, the SEC will either force an accounting of
shares or at least press the TA to immediately honor our cert requests.
Thus, if trading resumes, the squeeze may begin at the open and those who
persevere will profit.
>
>That is my read on the situation. Therefore, I am not elated at the
current situation, but I am cautiously optimistic that we can still prevail.
>
>All of my partially informed analysis aside, I still own close to 50K
shares of this stock and I have no intention of selling for a loss. I knew
that this was a sketchy investment from the start, but I committed to
myself that I would either lose everything or make a hefty profit. This is
high risk capital that I am using and thus I won't be crushed if RMIL
becomes worthless.
>
>So, as long as neither the SEC nor the 10-K shows a substantial difference
in float and assuming we reopen for trading on the 7th, I intend to buy at
the open. I think if we all ban together and buy even a small amount of
shares each, we can't be beaten. We control the stock, we hopefully own
nearly the entire float, therefore if we buy & don't sell, the price can't
decline substantially. If the certs keep rolling in then we should all
have an extremely happy new year.
>
>Bottom line, I've never sold a share of RMIL and won't as long as the
squeeze remains possible and/ or the Fundamental picture becomes positive.
>
>You haven't returned any of my last 5 e mails, I hope you will please
respond to this one. Provide me with your analysis, clear up any errors in
my thinking or my facts and answer the following question-
>
> Do any restricted shares lose their restriction and become part of the
float within the next few
> months? If so, how many?
I have no idea what Rule 144 are coming off of restriction and when.
If EVERY one has been truthful in their reporting to me, then we are very
close to a short squeeze! I only count what is reported to me, and have
keep all emails stating everyone reported amounts owned and called!
Everyone needs to take this time to HOUND their brokers with the letters
for RMIL stock certificate delivery and also notify the NASD and SEC that
the brokerage firms are delaying or denying your shares in RMIL Name FORM!
Riley G |
