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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services -- Ignore unavailable to you. Want to Upgrade?

To: Double Dipper who wrote (5323)	3/6/1998 3:57:00 PM
From: Andrew H	Read Replies (1) \| Respond to of 27968

Kevin--do a little of your own research. Seek and ye shall find. The web is full of explanations. In short, most preferred share offerings (especially by penny stocks) are convertible preferreds. That means that at some future time (hopefully at a specified price, but sometimes unspecified), each preferred share can be converted into so many common shares. These common shares must be provided for in advance by the company offering the preferred, so they will be there before the time of conversion. Adding common shares of course adds dilution. Like I said, you don't get something for nothing. Furthermore, adding additional shares is extremely unlikely to raise the price. It is a well known fact that dilution alomost always lowers the share price. However, this is all useless speculation until we know what Ira means by "share exchange." Hopefully Brad will respond since he seems to talk regularly with Ira and usually has the lates info on the company.