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Microcap & Penny Stocks : PLNI - Game Over -- Ignore unavailable to you. Want to Upgrade?

To: rrm_bcnu who wrote (1305)	12/28/2005 8:52:58 AM
From: Jeffrey S. Mitchell	Read Replies (2) \| Respond to of 12518

He's the reason ProMold has a $1M backlog. The question is what Pro-Mold is getting out of this merger. With a $1M backlog, I can't see them dumping all those paying customers in order to make Pac Chairs which is the ostensible reason for the acquisition in the first place. So the only reasonable explanation is, like the reason for most business deals: money. I would expect Pro-Mold to want cash and stock. Given Turek is in bankruptcy, there are only two viable ways he can get money: 1) sell stock, and 2) get financing. With no tangible assets, his only realistic option is to sell stock. My guess for why the merger has taken so long to complete is, given the limited market for PLNI stock, it's taken PLNI much longer than anticipated to raise the needed cash. Normally the initial cash and stock go to satisfy the principals of the company to be acquired. The big money (or promise thereof) is that the acquisition of assets will allow for financing and a way to pay for expansion. No one likes to finance a company with billions of shares trading for fractions of a penny. That's why smaller companies like PLNI often find it imperative to do reverse splits after acquisitions. If there are really sleazy, they'll convert their shares to preferred and make themselves immune to the r/s. While it might seem exciting to see "real" value added to PLNI in Pro-Mold, common sense (or Mergers 101) should tell you that companies pay a premium for an acquisition. That's why the stock of acquiring companies usually goes down while that of those acquired goes up. With PLNI and its numerous "the acquisition is already done" press releases, I wouldn't think a "it's finally done; trust us this time" PR would not give much of a bump to the share price. As for the audit, unless Pro-Mold's fiscal year is already over, I would think it would be quite a while before Pro-Mold has their 2005 financials ready for scrutiny by the (secret unnamed) PLNI auditor since they'd have to wait on Pro-Mold. I also think there's too much red ink right now and wheeling and dealing with stock that PLNI would rather not have everyone know about until it's largely over, which I think is still a ways off. I'm not sure what to think about Semco. After all, those guys are in Vegas, the home of penny stocks. Why they'd want to choose PLNI with so many other possible suitors is beyond me other than they've been offered a ton of stock. Maybe they are falling for the "Pro-Mold is on-board" line while Pro-Mold is falling for the "Semco is on-board" line, sprinkled with a liberal dose of the word "synergy." If I were Downdraft, I'd be begging for Semco to stear clear of PLNI and do their own reverse merger. Lastly, I think if somewhere down the line PLNI can ever achieve a bump up in the share price, using history as a guide, that JMH will sell whereas the true believers will hang in there and watch Turek run this company into the ground as he has the others. JMHO, of course. Feel free to tell me I'm FOS, but, if you do, at least have the guts to be on record with your own predictions! - Jeff