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Microcap & Penny Stocks : HITSGALORE.COM (HITT) -- Ignore unavailable to you. Want to Upgrade?

To: Q. who wrote (4246)	10/2/1999 1:01:00 PM
From: Mighty_Mezz	Respond to of 7056

re Does anybody believe that Jeanette Wilcher would restrain herself from selling these shares? Here's one possible scenario: LFT, with 2 million shares @ $5, but not having to pay for them until next April, shorts 2 million shares, naked, in Hong Kong, via their Korean connection, at avg of $15. Maximum cover price of $5 means minimum $20 mill in profit - $10 mill to Dorian, $10 mill to Jeanette. Not too shabby. ...Mezz - Theorizing on a Saturday morning...

To: Q. who wrote (4246)	10/2/1999 4:53:00 PM
From: dumbmoney	Read Replies (1) \| Respond to of 7056

Does anybody believe that Jeanette Wilcher would restrain herself from selling these shares? If she took money from that guy in Canada, and immediately bought a house with it, then what did she do with her HITT shares? Assuming the shares are unregistered, they can't be (legally) sold for one year. However, since LFT doesn't have to pay for a year, this works out fine. The shares are considered to be "sold" immediately (i.e. one year clock starts ticking) as far as Rule 144 goes provided that collateral is put up equal to the sale value of the shares. If the stamp collection is not really good collateral, then the SEC would probably regard this as an attempt to evade the securities laws.