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Microcap & Penny Stocks : 1ST MIRACLE GROUP (MVEE), founders last co. went $0.20-$46 -- Ignore unavailable to you. Want to Upgrade?

To: Walter Morton who wrote (4110)	8/10/1999 6:15:00 PM
From: LegalBeast	Read Replies (1) \| Respond to of 5541

Walter, we don't know how many shares exist for either company, nor do we know what the real value of those shares is. A lot of folks have posted a lot of numbers based on how THEY think that the numbers may work out. Clint has been equally worthless in this regard. Assume, however, that we take the press release at its face, what it appears MAY happen is that EINI will issue one share for every 12 shares of MVEE. The resultant will be a doubling of two things: 1) the number of EINI shares issued, and 2) the size of EINI. Then, after this is accomplished, EINI will change its symbol to MVEE and we will be trading the new EINI stock under the MVEE symbol. So, if the numbers indeed support the information in the PR, then in response to your question: "Doesn't that reduce the value of EINI by 50%?" The answer is NO, it does not. It makes EINI a larger company with more shares issued, but the real value of each share is the same as before. How the market will ultimately respond is a different issue alltogether and only time will tell on that one.

To: Walter Morton who wrote (4110)	8/10/1999 7:13:00 PM
From: Stephen Goldfarb	Read Replies (1) \| Respond to of 5541

Walter: It is common practice to issue new shares in order to acquire an asset. Issuing new shares is dilution of the existing stock. The offset is that the acquisition presumably adds value to the company. The last word from Entertainment Internet is that they presently know no more than the information in the news release. A further release is to be issued. I understand this is to clarify details of the first release. Since Hadid took over EINI, the capital structure has changed. Therefore, the figures of outstanding shares posted in the company's 1998 financials are no longer valid. The figures in the June 29 Wall Street Research report (about 13 or so million shares) is probably invalid as well. As of this morning, Tracy at Rubenstein Investor Relations, was still reporting that 109 million shares of MVEE were outstanding. However, there is now a lot of ambiguity about that figure. It is another issue that needs clarification by the company. It is still an open question whether MVEE shareholders are getting fair value in this merger. Steve