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Non-Tech : Stocks moving from the OTCBB ---> AMEX -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (40)	10/29/2000 9:39:07 PM
From: Q.	Respond to of 57

BB and pink sheet scam companies now commonly attempt to satisfy the AMEX or Nasdaq requirements for shareholders equity (or net tangible assets) by coming up with some funny assets. Typically this is done by issuing shares to purchase an asset from a seller. Sometimes they say that they are "acquiring" the asset, as if they were acquiring a company, when it might be nothing more than the mineral rights somewhere. It's possible that the asset doesn't exist, or the seller doesn't really own it, or that it doesn't have anywhere near the value that the company says it has. This is especially easy to do with mineral rights or intellectual property. I suppose if the company gets caught in this scam, it can always claim that it was the victim of fraud when the seller of the "asset" misrepresented it to them. Scams of this sort are easily identified thusly: the balance sheet shows very little in the way of assets, except for one single item that recently appeared with a stated value of 5 to 20 million dollars. It appears about the same time that the company says that it will apply for a listing.