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Microcap & Penny Stocks : MSU CORP-----MUCP

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To: Charles A. King who wrote (10)5/22/1996 2:47:00 AM
From: Zane Myers   of 6180
 
Hi Charles
I just jumped back into MSU corporation with a substantial position (8000) after taking some profits on the recent run up. Unfortunately, there are still a number of short sellers in this trying to drive the price down however I believe this company is for real. We had some selling pressure today on the old buy on rumor sell on news routine and I believe we may see some more in the next week or so. That being said they have signed their first agreement with an American Company today for their Netbox chips. The technology they posess seems to be far and away more advanced for this application than any other manufacturer. The manufacturer (American Interactive Media, Inc. has plans to bring this product to market by September-October in time for Christmas Sales. As long as they are able to get production geared up enough this product could be "the" product of the 1996 gift giving season and propel them up and away in much the same way that Nintendo was propelled with their video game equipment some years back. In conversations with a company representative today one of the key features of their chipsets is the versatility and the ability of their chipsets to replace much of the internal hardware needed to manufacture the Netbox. This gives them a distinct advantage in manufacturing over competing chip manufacturers. I have been advised they really are in negotiation with numerous companies with houshold names you and I would recognize. If we have several other announcements from the company in conjunction with these household name electronics companies we could really have a run up in the stock to the 15 to 25 dollar range. However, that being said these large Multinational Companies they are working with, work in strange and wonderous ways (aka slow) so depending on where they are in negotiations it could be anywhere from a 3 days to 3 months before another signing announcement comes along. When the annoucement start to come they could be Reeealy BIG. I expect there will be some additional short term selling based upon the dissappointment of some shareholder expecting this last announcement to include names like Panasonic or Sony. Originally I thought I would sell my shares as well and make the short term play of trying to buy them back at a lower price but I have abandoned that strategy and have deceided instead to buy more on the dips ( the bigger the dip the more I plan to buy). Who Knows maybe it won't dip and I won't be able to steal those shares away from some other uninformed fool. Worst case scenario it will go up from here right away. $20 a share with a cost basis of $8.50 by August if it doesn't dip or $20 a share by November with a cost basis of $5.00 if it does dip. Either way it's going there. I just can't deceide which scenario sound better to me, What do you think?
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