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Microcap & Penny Stocks : MSU CORP-----MUCP -- Ignore unavailable to you. Want to Upgrade?

To: mike proiette who wrote (1097)	6/4/1998 5:29:00 PM
From: Hawkmoon	Read Replies (2) \| Respond to of 6180

It's bold, but you're in good company.... :0) Folks, I have a suspicion that the noteholders of the $2 million convertible debt may have been behind the selling pressure on this stock. (just a theory but hear me out.) The debt was supposed to be converted originally at $3/share, relatively non-dilutive given current fundamentals. However these negotiations began last year and forced MSU into a "quiet period" with no ability to release news and support the stock or inform shareholders of current activities. The result was weakness in the stock and an opportunity to short and lock in $$$ while the company was held a silent "hostage" to the conversion negotiations. Now why would the noteholders want to do this since they would obviously want their MSU stock to retain value?? Here's the scenario. First the MSU debt is NOT a floorless conversion. The minimal price of conversion, as per the 10Q discussion, is .75/share. The original price was $3 but if one could short the stock to lower levels one's negotiating stance with the company would be increased and pressure could be applied to lower the $$ level of the conversion. This is exactly what has likely happened with the change to a $1.50 conversion price. Now why would these noteholders want to take a risky short position like this?? Because they know that MSU can't defend itself in the public market while in a quiet period. They know that past baggage with Global Financial Traders may have tainted the public opinion of the stock and that they should be able to contain any minor price increase through equal shorting(selling) pressure. AND they know that once the debt is converted, they can deliver this stock to their brokerages to cover their short position. But I don't believe they weren't counting on the AIME deal being worth so much and happening so quickly, so now they may be desperate to hold the price action down in order to fulfill the conversion at .75/share or merely to save their own necks from a violent short squeeze a la CFON. Basically no one expected the settop box market to be as hot as it is with the CFON action. That also was a short squeeze with 800,000 of 5 million shares being short. I have no reason to believe that MUCP hasn't been accorded similiar attention by the Shorts. The difference is that MSU will be profitable this quarter for the first time ever. Think about this scenario when weighing the boldness of your purchase price. Regards, Ron

To: mike proiette who wrote (1097)	6/8/1998 6:21:00 AM
From: Bert Zed	Read Replies (1) \| Respond to of 6180

Mike, Sorry about the delay Mike, been cycle racing. Including your holding I know of 7 of us holding 551,500 shares. 96.2% of my portfolio is in MUCP. Thats how convinced I am and I am supposed to be a prudent accountant !! Ron's excellent post has laid out the raison d'etre of the shorters. They are holding this down. It is as clear as a clear crystal ball !! Once the shorting contrived market situation clears, the stock will move ahead very, very quickly. We just do not know wether it will take a week, two weeks or a month. I suspect a couple of weeks at least. Del. PS Who filed the 144's ??