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Microcap & Penny Stocks : A Wall Street West Newswire Discussion Board

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To: Beermeister who wrote ()1/2/1999 2:21:00 PM
From: Beermeister   of 456
 
How to Invest in Bulletin Board 504 (IPOs) prior to being listed? We are in the process of bringing four new companies to trading. Here is how it works:

For each deal, 35 shareholders are needed to invest approximately $2000 to $2500. In one deal we know of, investors have recouped 10 times their initial investment in a matter of months. Of course their are no guarantees.

These funds are used to buy a publicly traded shell. These initial investors (founding fathers) are issued "units," consisting of free trading shares and options to purchase more shares at a discount to what the stock will open up at on the bulletin board.

When the stock opens up (approximately 90 days), these founding fathers must be patient, and not dump their stock until buying comes in from the general public. Because these 35 investors hold, the stock will shoot up when outside demand comes in . When the marketplace will bear it these investors will discriminately sell their shares into the market.

The funds they receive from selling are then sent in directly to the company in order to "exercise" the options to purchase more free trading shares at a steep discount to what the stock is trading at at that time.

So in the end, the founding fathers can get their initial investment back, and a bunch of free trading shares that they can either hold onto or once again sell.

Each deal requires 35 investors to get started. The capital is risk capital, as there is always the chance that the stock will not be well received by the public and may never get the necessary trading volume.

Anyone possibly interested in participating with us in one or more of these deals is urged to write a letter to Editor@wallstreetwest.com and asked to be placed on our list. You will be contacted and instructed how to proceed.

This is not a solicitation for securities, simply a "guage" of possible interest in a process. Thank you.
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