This one is worth reading and thinking about. Again this is from Yahoo Matthew
Some points to ponder....
From: I_B_Confused May 13 1998
To moneybags,
Please give us the source of this information regarding the 'rags to riches' fete of going from $38M to only $4M in debt. We would all have a better feeling regarding the company if we could read it for ourselves.
Hoo
How could he have any affect on the price of 10M shares traded between 450 or so traders? Think about it. While you are at it, think about all the posters here that have indicated they bought in the last week. What would that total be? Humm.... Anything like 10M/day? I don't think so.
What is to explain the heavy trading? I think at this point we can discount any numbers regarding shares posted anywhere by the company. We do know that at one point there were about 9M outstanding with 45M authorized and about a 5M float.
Humm... Ponder this. What if the company used the remaining authorized shares to liquidate' the debentures. How would this take place? What about issuing them the remaining shares and give them the opportunity to trade them and provide enough time to allowed for them to exchange trade them for cash. Let's say that 35M shares at say, oh, .05 cent/share would generate about $1,750,000. More than enough to off set the debenture debt. If that is so, what about issuing them enough to satisfy only the debt to them, and say the company chose to put the remaining shares in trade. Result, an extremely large short position. Now, say the company tells the stock holders to call for the certs, because, there will be a name change. With no knowledge of the possible dumping of remaining authorized shares, the stockholders will think it is a good idea. Yeah, help the company squash any shorts possibly runup the price. Still shareholders may be a little concerned. Well, how about issuing a no cost warrant for additional 'new company' or 'old company' shares at some yet to be determined price and don't tell them how many warrants are issued per outstanding share.
Humm.... Now that we keep them around. From the companies prospective and forge ahead, the large number of outstanding shares must be dealt with. To make this thing work, do a reverse split. 1 for 300, or 1 for 500 or 1 for 1000?? Humm... will it work? As long as the information is managed in such a way as to spoon feed the stockholder with just enough information to keep them around it will. Just long enough for the debenture holders to off load all their shares.. Say sometime June/July, name change. Could this be a game plan and could the company make this magic work. Humm....
Now, say to further cloud the issue, bring in the penny stock pump and dump specialists. How do we do that, buy thier services with some of the outstanding 'authorized' shares. That way they can pump, then dump their shares and make their money. They come pretty cheep you know. (Course everyone here has read the disclaimer on the P&D specialists home page, so we know they say right up from they can be bought.)
Well, this is just pondering. I have nothing to indicate this is the case, just an uneasy feeling.
But it brings me to my major concern. The debenture business had never been address to the stockholders. This area has been a complete void, except for the SEC filings regarding them. At this point, with the company taking off on a 'new' they need to give a complete explanation of their position with regards to the debentures, and how many stocks are currently outstanding, in all categories.
Think about it... Could it be a circle within a spiral we are caught in? Humm....
Anyway,
Cheers!!!
I B Confused
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