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Strategies & Market Trends : WAST - why so low? -- Ignore unavailable to you. Want to Upgrade?

To: Honda who wrote (321)	6/8/1998 12:26:00 PM
From: Maximum_Gain	Respond to of 712

Honda You Missed this from Yahoo: maximum_gain (33/M/NY) Jun 8 1998 12:19PM EDT Yes there IS something going on here behind the scenes. Something very big, and very unethical IMHO. I find it very ironic that many here claim to know so much about this company and the waste industry as a whole, yet they didn't know about the pending $72+ million dollar law suit. Or the warrants @ $0.667. Thanks PALS. Maybe people did know and they didn't want to post anything negative, anything that would detract from the HYPE. I find this very reprehensible. Well FELLOW WASTERS here's the news everybody has been wondering about, in black and white. I found it, and I've been labeled as not knowing anything about this stock or the waste industry. One thing I do know is that this news presents a pretty big potential liability to wast. And because I have not seen any Company press releases that addresses this issue, or calm investors I have lightened my portfolio of WAST by 80%. I still believe in the story that this company is trying to write, but until they are forthright with their background activities I will not commit my hard earned money to a stock issue that in my opinion is being manipulated. The News will follow this post.

To: Honda who wrote (321)	6/8/1998 12:28:00 PM
From: Maximum_Gain	Read Replies (1) \| Respond to of 712

From Yahoo: maximum_gain (33/M/NY) Jun 8 1998 12:20PM EDT Pa. group suing WasteMasters By Jim Johnson PHILADELPHIA -- An investment group is suing WasteMasters Inc., seeking almost half of the company or more than $72 million in damages. WMI Investors Inc. of Philadelphia unsuccessfully tried to purchase 49 percent of WasteMasters last year as the company teetered on the brink of financial ruin. The investment firm now contends it lived up to its side of the bargain -- offering a $1 million line of credit and depositing $150,000 in a bank to help get the company through a financial crisis. WMI claims it has a valid warrant to acquire a portion of the company. But WasteMasters considers the legal action a nuisance, said company attorney Barry Roberts. "The entire lawsuit is frivolous." WMI's deal with WasteMasters ended up being illegal under Maryland law because it contained stock with "super-voting rights," Roberts said. WMI still wants its share. The investment company "had the rug pulled out from under us, basically," alleged WMI President David Ehrlich, when WasteMasters instead agreed to be acquired by Continental Investment Corp., of Dallas. So WMI has filed a lawsuit in Philadelphia County (Pa.) Common Pleas Court. "We made a demand for the stock, and now we're litigating," Ehrlich said. WasteMasters, in terms of assets, is not the same company today that it was last summer when Continental and WMI battled for control. Under Continental, WasteMasters has gone on an acquisition spree during the last few months, buying five landfills, four hauling companies, 10 recycling facilities, a sludge processing site and a transfer station. Many of the deals were paid for with stock. Ehrlich realizes that WMI's demand for 49 percent of the company would dilute shares now owned by those who recently sold to WasteMasters. But they should have been aware of the possibility of litigation considering last year's problems, he said. WMI received a warrant to purchase 49 percent, or 29.9 million shares, of WasteMasters stock last July and used that figure multiplied by a recent share price of about $2.43 to determine its request for $72.76 million, WMI said. WMI's warrant allows the purchase at 6.67 cents per share, Ehrlich said. Roberts questioned the timing of the lawsuit, filed only after WasteMasters stock had risen in value. [ News & Features ] [ Breaking News \| Contact Waste News \| Contents ] Entire contents copyright 1998 by Crain Communications Inc. All rights reserved.