AmeriResource Technologies (ARET) Message Board

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Microcap & Penny Stocks : AmeriResource Technologies (ARET)

ARET 0.0001000

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Nov 5 1:03 PM EST

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To: Mr. Jens Tingleff who wrote (1186)	8/3/1998 11:14:00 PM
From: Richard Mazzarella	Read Replies (4) of 7609

Jens, a floorless conversion is a form of company funding. The supplier of funding can convert based on the current trading price for the stock. For example if someone provided the company with $100,000 in funding with floorless conversion and the funding source wanted to convert today, the company would have to issue the funding source 5 million shares based on today's trading price of $0.02, sometimes even at a discount. What can get even worse is that the funding source previously shorts the stock to drive the price down so as to convert at even more shares than they would otherwise. They then sell that stock to drive the price down even more before converting again. Another scenario is where a funding source is an MM that can naked short the stock to drive it down. I'll let David explain naked shorting to you since he is such a smart ass. What has me concerned is that nobody has told me based on fact that this company isn't doing a floorless conversion. If anyone besides David knows if this company is, or is not doing a floorless, please post.

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