All American Food Group(AAFG) Message Board

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Non-Tech : All American Food Group(AAFG)

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To: WEBNATURAL who wrote (334)	8/31/1998 1:29:00 AM
From: Loren S.	of 618

I'll preface this by saying I haven't been in AAFG all that long and you guys seem to know a lot more about the company. I'm sure if I misstate anything, you will correct me. You haven't failed to do so yet. I got into this stock a couple of months ago at around $.25. At the time the Benny's Bagels acquisition was in the works and a few days later the CRT deal was announced. The stock appeared attractive because of the acquisitions and my understanding that there were only 2 to 3 million shares outstanding, giving the company tremendous upside and value potential. Then we get the NASDAQ delisting. The stock price is destroyed. The Benny's and CRT deals are off. The stock continues to fall. This last week we see a tremendous increase in volume all of a sudden. On Friday we learn that the outstanding numbers have increase from 2 plus million shares to over 21 million. At the same time the price has crumbled to $.04. You don't think I have reason to be concerned. My explanation for the crash in price is the huge increase in outstanding share numbers. Those shares may have been in the pipeline previously (as an new and uninformed investor I was not aware of them). But the biggest concern people seem to have on Yahoo is that these shares are now being traded and appear to be unloaded on the market, indicating that the holders (insiders?) don't have much confidence that the price is going up from here. My concerns about reverse splits arise from my experience with other pennies whose outstanding share numbers increased so quickly. Often these companies are issuing shares onto the market for pennies. Then they reverse split and start the process all over again, leading to tremendous decreases in stock value. I don't know if that is going to happen here. But I don't know where AAFG is going to get the capital for their expansion other than issuing more stock. If they issue stock at $.04 or less, they will have to issue a whole lot more shares to bring in any kind of dollars. The result- erosion of our shareholder value. Okay now let me have it. Where are my assumptions wrong as they pertain to AAFG? One final question- how much stock do Thorburn and other insiders own? That is very important to what I think will happen.

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