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Strategies & Market Trends : Mafia Stock Mobsta's Social Club (Bulls Board) -- Ignore unavailable to you. Want to Upgrade?

To: partysasquatch- who wrote (612)	8/22/2005 2:00:29 PM
From: rrufff	Respond to of 6687

The PR spells it out. I had intended to contribute a portion of the proceeds from these sales to reduce INSEQ's debt. But a number of our shareholders argued that surrendering the shares will be more accretive to shareholder wealth than simply reducing debt today, particularly as we reduce debt with the earnings and surplus assets of INSEQ's planned acquisitions. I re-worked the numbers and they appear to be correct. Accordingly, I am cancelling my planned sale and surrendering these 35 million shares plus an additional 15 million shares of INSEQ common stock that I had received earlier this year for my services." If he had actually sold the shares, it might have killed the stock and led to a reverse split. I suspect this is a first step with convertibles being taken out fairly soon. They have a massive plan when you take all entities together and there are more than 3 companies involved. Companies cutting o/s and/or float usually get run up as shareholders interpret that as adding value to analysis. E.g. look at HISC. Stock reaction - if I recall correctly, the stock went down at first after the news of cutting debt, then it went up. I disagree as far as the pumps. This is not heavily pumped compared to our "mafia" stocks. (The PR for GSHF was too complicated. It took me a few reads and the bottom line is that he basically winds up converting to a figure based on net asset value. The higher the net asset value, the lower the CEO's ownership goes over time, which is a favorable thing. He had no legal obligation to give up anything and he currently owns 80% of GSHF based on full dilution numbers.) So - I don't see how cutting outstanding shares is a bad thing. I am not claiming this is anywhere near a sure thing or safe. It could very well be a scam. We are talking about pennies and sub-pennies, any of which could be a scam, and I can bash any of the stocks if I so chose, including the dilution e.g., at RSHN.