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Microcap & Penny Stocks : THNS - Technest Holdings (Prev. FNTN) -- Ignore unavailable to you. Want to Upgrade?

To: DesertRat1 who wrote (14491)	10/15/1999 6:42:00 PM
From: DesertRat1	Read Replies (5) \| Respond to of 15313

To All, Let me preface this post with the disclaimer that I'm not a CPA, and most of what I'm about to say has been brought to my attention by others who post here on SI. (So I give them all the credit if it's wrong! LOL.) On Tuesday, October 15, there was a large sell-off in the stock. At the end of the day we had two big trades (sells), 156K and 166K. Today we traded 362K with a 17% loss. So it's obvious someone (I mean that in the plural sense) is selling. Still the big question is who? On this coming Wednesday (10/20) the company will have a convertible promissory note due. A quick background on that: On July 20, 1999 the company borrowed $500K from someone (if someone knows whom, let me know). They promised to pay back the money by October 20, or convert the "loan" to common stock. And in all fairness, these notes are usually converted to stock when you're talking about a small, startup company. The key to "my" speculation on why/how the stock has been "driven" down is based on how the conversion is done. It's NOT A FIXED AMOUNT of stock. In the SB-2 it states that the conversion will be at the lesser of: A) .50 per share, or B) 75% of the average closing bid price per share for the five TRADING days immediately PRIOR to the conversion date. Those days would be 10/13, 10/14/, 10/15, 10/18, and 10/19. What this means is that the lower the stock price is (assuming it's below .50) during those five day, the more stock the lender will get in the conversion. The bottom line is that it would be a perfect opportunity for the lender to sell a few hundred thousand shares over that period to push the price down. If he can convert at today's price of .25 he would more than double his share count in the conversion when compared to it being done at .50. The risk this person is taking is that the price jumps up over .50, lol. But either way, he will make out, just not quite as much. So "my" point is: watch out for the next few trading days. We could be "pushed" down more. How much more? I don't know. It may depend on who the person is and how much stock they have right now. And how much "we" sell along with him. So I have a question for any in-house lawyers. If this is the case, is there anything "illegal" about it? I would assume not if the person were an independent investor. I would assume YES if the management of FNTN is in any way "in the know" and is "helping a friend" by delaying any possible PR's. Just a question. To be fare to all of the friendly posters out there, I will say that Mrs. Drat sold 2/3 yesterday (She bought on Tues.) She's less of a rat than I am. She can't weather the smell as much. I'm anxious to see what happens over the next week. I will still be a stockholder come October 21. Sometimes after walking through the stench of the sewer you reach the flowerbed on the other side. Have a wonderful weekend, Drat.