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Microcap & Penny Stocks : BANY: Core business growth, exciting affiliations! -- Ignore unavailable to you. Want to Upgrade?

To: brad greene who wrote (1402)	3/23/1998 7:43:00 PM
From: Mike Sawyer	Read Replies (4) \| Respond to of 5847

I tried to get through to the transfer agent but only got a voice mail so I called BANY's PR Firm. I talked with Scott Sitra for about 15 minutes and got some info that I'll highlight here... Total outstanding of about 7.5 million shares includes 3.1 million in the float of which about 1.5 million has not yet been issued. They are going to be issuing it in cert form in the next month. I don't recall the exact relationship that these stock holders have with the company but it seems like it had something to do with an old business. Was there a merger or buyout in the past? I questioned Scott as to whether this new issue of stock may have been shorted against as this could be where the market makers are planning to get coverage for their short. Scott did not think that it was possible but I would not doubt it...I just don't really know for sure. I know one thing...I better not find out that it was true after questioning it and getting a response of "no, it did not get shorted against". If anybody has any info as to who gets this new stock and why they get it, I would like to know. But for those that are lost in what I'm talking about...this stock I am referring to is already figured into the float of 3.1 million shares. That leaves 1.7 million in the public float. If we pull 500,000 shares out over the next week or two it will leave us with a tiny working float. Now add to this the fact that Scott says that we might be getting some help from a group of investors that like the idea of buying up shares on such a big short. If this happens...KABOOM! The stock goes up. But what will hold it up??? Ahh...now we get to the meat of things. Scott says that it is a fact that the shorts had reason to jump on this stock as their sales were extremely flat last year due to some problem with a buyout/merger type of deal (explanation from old timers would help here). He said that the revenues were less than $300,000 and that really stunk. But good news on the horizon... Scott says that Banyon has steadily increasing revenues at this time and expects to have a great second half of this year. They have increased the revenues from their government contracts and have several new contracts pending. They are in talks with supply agreements with OEM's and he stressed...more than one. He said a conservative estimated projection of revenues for this year would be $2,000,000-$3,000,000. Now that's what I would like to see! He said that Banyon has a very high margin and low overhead that results in a break even point at about $600,000 revenue. With that, Banyon expects to have a profitable year, very profitable he said. Scott says that the short seller is a part of many stocks. They jumped on this one and drove it to the ground...and I must say that it did have some merit as the company was not worth $2 at that time. But Scott also said that it's time for the shorts to move on to some other stock and let this one go back to regular trading. Folks, that's what is about to happen in my opinion. Even if the shares that are about to be issued can be used to cover a short...the shorts are about to let go. There is no reason for this company to go to zero...and if a short can't go to zero...they leave sooner or later. If we get help from a "short buster" outfit...it could really be sooner than later. If we pull all of our certs... it could really be sooner than later. People, I'm not negative...I just call it like I see it. I do have a concern that the short will be covered without a big squeeze but that won't cause the stock to collapse again. It will just mean that we won't get a huge run to the sky. Hey...I'll take a buck. Any MM's want to buy me out for a buck??? That's the minimum I'll take at this time because I think that Banyon is on the right track. Good Luck! Mike Sawyer PS - Always just an opinion...I can't state facts since I don't really know any.