NBMX - National Boston Medical (was FGRX) Message Board

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Microcap & Penny Stocks : NBMX - National Boston Medical (was FGRX)

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To: William Hayden who wrote (1101)	3/4/1999 12:59:00 PM
From: Jeffrey S. Mitchell	Read Replies (2) of 1286

Dermaguard plans to secure more than 70 product brokers for SafeShield and $6 million in sales before the end of the year. As part of its distribution agreement, NBM acquired a 5% ownership in Dermaguard in exchange for 150,000 shares of NBM's common stock. Let's translate that: Dermaguard places an "order" (i.e. they issue a PO but don't actually cut a check) for $630,000. Gullible investors focus in on the $6M figure rather than the word "plans" (as in, I, Jeff, plan to make $6M in the market this year... but don't stand a snowball's chance in hell (g)), and bid the stock up because it's now "undervalued". Dermaguard gets a kickback: 150,000 shares of free-trading stock, which they sell into the run-up. Sounds like a plan to me! - Jeff P.S. FYI, the sale to a distributor ploy is one of the oldest tricks in the book. SI is littered with such tales. DHMG is one that comes to mind. In many cases the distributor ends up being owned by the company whose product(s) they distribute.

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