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Microcap & Penny Stocks : Diamond Entertainment Corp (Previously DMEC) -- Ignore unavailable to you. Want to Upgrade?

To: Matt Brown who wrote (4581)	6/10/1999 9:43:00 PM
From: OLD JAKE JUSTUS	Respond to of 6957

>>>>>> 11 Jun 1999 01:24:12 -0000 ddstocks - ddstocks.com You are all free to post this update. We ask that you include a link when posted elsewhere. Great News on DMEC. This update is longer than usual, but there was a lot for us to discuss. 6/10/99*DMEC*- < From ddstocks.com ddstocks.com > Traded between $0.154 and $0.17; however, prior to the close the bid jumped to 0.16 and the ask to 0.177 after hovering around 0.16 most of the day. The afternoon increase seems to be the result of the news. We feel the news is great. DMEC announced the conversion of $1.9 million in debt into restricted shares. For the full PR: biz.yahoo.com . DMEC made several strong statements in this press release. Most importantly, the conversion of debt into restricted stock is very interesting. It suggests to us that: 1) the creditors believe in DMEC, since they cannot sell the stock for a year 2) a large portion of DMEC's debt has been reduced and 3) this will have positive effects on DMEC's financials. However, we do not believe this reduction in debt will be realized by the time of the June filing, but be shown in the subsequent filing in August. The big question at this juncture is what will the markets dictate. We simply do not know, but at the minimum this PR should cause some of the MM's to think about the positions they have. Reduction of debt is a big step for DMEC and this should be considered a positive PR for all investors. The PR says that the conversion satisfies DMEC's two biggest creditors. Think about the company's low debt and sleep a little easier. Now on to the rest of today's PR. According to the PR the server is currently being tested for restrictions and security. This takes time and should not be expected overnight. We, like DMEC want to make sure they take all adequate steps to ensure safe transactions and hopefully eliminate any potential liabilities that could result from the website and server. Therefore, we are pleased that DMEC is carefully reviewing these items before widespread release. In the second paragraph of the PR read carefully. It mentions DMEC's new strategic alliances for e-DMEC. This tells us that there are alliances that are completed, but not yet divulged. We are very interested in these possibilities, because they specifically refer to e-DMEC. This is another cliff-hanger: DMEC, according to Gary Swancey "very likely" has been working on a deal involving technology that is currently black and white, but that they will offer in color. We are leaving this out there for our readers to think about. We think this will be an exciting product with growing demand, but we are waiting like everyone else to learn what product this may be. As for tomorrow, the market will do what the market does. However, we feel tomorrow should be a positive day as MM's begin to realize that DMEC's financial are looking better. We still maintain our $1 price target.<<<<<<