Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : The Perils and Pitfalls of Investing With "Friends" -- Ignore unavailable to you. Want to Upgrade?

To: Done, gone. who wrote (15)	10/26/2004 1:19:23 AM
From: Done, gone.	Read Replies (2) \| Respond to of 377

And later, details... OK, you can check out the company on Edgar. It is called Xxxxxxx Acquisitions. Here is a brief outline of the concept. One million shares go to friendly hands. With those one million shares go 5 million warrants. Nobody sells the warrants. When the stock trades above a dollar, we exercise our warrants, which means we pay a dollar (the exercise price) and we get a share of stock for each warrant. The warrants will be freely trading, but what these guys want to do is keep all the warrants in friendly hands. The exercise of the warrants is what is going to be the major funding of the company. It's pretty cool. If you did not know, you can exercise warrants with no money under certain circumstances. If the stock is trading above the exercise price of the warrants, the brokerage firm will loan you the money to exercise the warrants and then sell the stock and pay their loan back, and you pocket the difference. They are happy to do this because it is a no risk deal and they get a commission. So the way this will work if it works is that liquidate the warrants and the stock over a period of time. The key is that the stock has to be trading above a dollar. If it goes really well, like the stock goes above 2 or 3 bucks, we could really make a nice score on this.

To: Done, gone. who wrote (15)	10/26/2004 1:20:34 AM
From: Bill Ulrich	Read Replies (1) \| Respond to of 377

Holy smokes. How much later was the email? One of the club members said he was approached to bail TLC out of a homeless shelter. I suspect that was BS. I mean, how do be a master trader, trading options willy-nilly, solicit on SI with an apparently very active internet connection ... from a homeless shelter? Strange but true. This story gets even stranger. Stay tuned. "If you are interested, I can get you 5,000 shares at ten cents. With each share, you get 5 warrants exercisable at one dollar. What this means is that if the stock opens and goes to two bucks (which is what they expect) you will have 5,000 shares at a dime and 25,000 shares at a buck, all for $500.00."