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Microcap & Penny Stocks : LifeOne, Inc. (LONE) -- Ignore unavailable to you. Want to Upgrade?


To: Mr. Jens Tingleff who wrote (1810)9/15/2000 4:43:02 PM
From: Puck  Read Replies (3) | Respond to of 1834
 
I've attempted to reach the trustee several times over the course of the summer without success. I finally managed to talk to his assistant this afternoon and will relate what little she told me. She said that LifeOne was no longer involved in litigation against the convertible debenture holders. When I asked why she said that the decision was the trustee's to make. She then explained that his role was to protect the interests of the company's creditors and that any decision he made would have reflected his stated purpose. I asked if any creditors still had claims against the company and she acknowledged that certain creditors still did. I then asked if Brent Chapel was still associated with the company and she told me that he was not. I asked if LifeOne's stock would continue to trade and she said that it was not their current intention to make any changes with regard to the stock's public market. She did provide the faintest glimmer of hope though. She said that it was possible that LifeOne could emerge from bankruptcy if the trustee were to become satisfied that all creditors claims had been settled and that there was still a potential reverse merger opportunity (she wouldn't reveal why Communicata fell through) that was under consideration.

I'm sorry to report this mostly negative news. It shouldn't really be much of a surprise given the share price, now slightly above one cent. I'm disappointed that the RICO lawsuit doesn't seem to have had a positive outcome for LifeOne shareholders. My sympathy goes out to Brent and Jayne who appear to have lost much of their net worth in this fiasco. To think it was only three and a half years ago at New Years Eve that they purchased control of LifeOne, then known as National Affiliated, with bright hopes for making it an acquirer of other troubled insurance companies in the Conseco mold. Unfortunately, LifeOne came with a skeleton in the closet--which became the Classert class action suit--that doomed it from the start.

I've enjoyed all your company as fellow LifeOne shareholders in spite of the bitter outcome. As I learn more, I will report it here. This experience has left me scarred but it not the first and my healing began last year so I'm over it. We can gain from our experience with this company if we learn from it so that we don't commit whatever mistakes led us to invest in it in the first place. What I have learned is to be cynical of management optimism, especially when management begins failing to deliver on its promises. I and others listened avidly to Brent when he insisted that the next acquisition was just around the corner and that the company's future lay before it. He wasn't attempting to deceive. He was always attempting to place the best face he could on an increasingly desperate situation, however. His enthusiasm infected me and blinded me to early warning signs that more trouble lay in this company's future. When the first announced acquisitions fell through, I should have sold my shares and not returned until such time as management had begun delivering. And, in retrospect, I should never have invested in an irregularly reporting company. I'd never done so and never will again.

Best Wishes Jens and All