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.

Microcap & Penny Stocks : ICVI (now MTEI) -- Ignore unavailable to you. Want to Upgrade?

To: Dixie7777 who wrote (3150)	5/26/1998 12:42:00 PM
From: AF	Read Replies (3) \| Respond to of 11850

Any ideas why the b/a is not moving? Everyone go to lunch?

To: Dixie7777 who wrote (3150)	5/26/1998 1:07:00 PM
From: Lazarus Long	Read Replies (3) \| Respond to of 11850

Well, I finally got through all those posts from the weekend... You know, it kind of occurs to me that though the experience was PAINFUL, that some good came of it. Painful in that the great DD done by Macker, Rocketman and Tod C. was held up for questioning. Those of us from the DGIV mothership do not question these guys as they have proven themselves over and over and EARNED our respect. It is painful to continue to re-post the same information over and over when someone just isn't getting it. And my hackles certainly get raised when someone questions the integrity of these guys. One question was raised over and over again. What it really boils down to is: "What does Mountain Energy get out of executing this reverse merger? We NEED to answer that question fully in our own minds. Without doing so, we may always have some lingering doubt as to whether or not this is a scam. Bill L. gave us several reasons... We know that the stakeholders in the private company wanted to take the company public. They also wanted to do so quickly and executing a reverse merger with a shell company is certainly a good way to do so. I confirmed both of these facts myself when I talked to Mr. Uselton before the merger completion was announced. Now to the talk of dilution of the STAKEHOLDERS of the privately held Mountain Energy... this is going to be true when the company goes public whether it is through an IPO or the route taken. The assets of the company now are divided amongst all the stockholders, not just the original stakeholders. HOWEVER, THAT DOES NOT MEAN THAT THE ORIGINAL STAKEHOLDERS HAVE GIVEN UP VALUE! Think about this... The original stakeholders now have 50M shares of a stock valued at book at $2.85. If the 1.5 multiplier is used to fairly value the stock it is now at $4.28. If I multiply that by the 50M shares, I see that their holdings are now worth $214M instead of the $200M original estimate. That sounds like pretty good business to me. All they have to do is have patience to see that increase in value. Also, one can bet that they were snatching up shares from the time of the April announcement of ICVI acquiring ME - with that announcement, the deal was now in the public domain and they would not be trading on insider info. Now, let say they pick-up a measly 1M shares at between $.05 - .10. They now have leveraged that $100K (at most) to another $4M + on the deal. Again, it sounds like they've made the right decision to me. MOUNTAIN ENERGY IS PROSPERING QUITE HANDSOMELY BY THE DEAL... BELIEVE IT! All they need is patience to realize their gains. You see, because of the P/E multiplier, they are able to maximize their wealth above and beyond what would happen if they maintained the company as a privately held corporation. This is just an expansion of the logic behind ONE of the reasons that Mountain Energy decided to go public. DO YOU THINK THAT THEY WILL PROFIT BY THIS DECISION???? (Hopefully, the answer is obvious by now) AND GUESS WHAT? WE CAN PROFIT TOO! Have patience and hold. Lazarus