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Microcap & Penny Stocks : PNEC - Planet entertainment ready to spin gold -- Ignore unavailable to you. Want to Upgrade?

To: R.STOCKS who wrote (134)	6/11/1998 2:25:00 PM
From: rharris	Read Replies (1) \| Respond to of 221

IMPORTANT: PNEC INFORMATION TIME! For those unduly concerned about the MM's walking down the prices in the last few days (on little volume I might add), I would like to offer the following - Planet Entertainment (PNEC) presently is a non-reporting, Bulletin Board company (PNEC is working on changing that status very shortly). Because of this, they are not subject to reporting requirements. I think what happened was the MM's (who I think are way short on PNEC) saw the news on the convertible financing deal, and thought shares would be immediately hitting the market. They also thought they could get a lot of people to sell (WRONG!!) and scare a major amount of shares out of the market to cover. Those convertible preferred shares are NOT sellable now and myself,as a layman,understands the situation as follows: 1. A Form 10 has to be filed with the SEC which, upon approval, turns the company into a reporting company. This process could take 2-4 months. PNEC is currently in the process of compiling a Form 10. PNEC files the Form 10, then within approximately 30 days, they will get comments back from the SEC. Then PNEC responds to the comments, back and forth until approval of the filing. So....... the time period to become a reporting company is 2-4 months, after the process begins. Now, 2. After the Form 10 is approved, then PNEC is officially designated as a reporting company. At this point, they are able to make the appropriate application to NASDAQ, or possibly AMEX. Also, all financial information is required to be disclosed on a quarterly and annual basis. After the Form 10 is approved, the company's next step is to file the "Registration Statement" (this registers the shares) which could take an additional 2-4 months. After the "Registration Statement" is approved, the company probably will be seeking to register some of the shares underlying the preffered stock. 3. It is only when the "Registration Statement" is approved that ANY of the shares underlying the preferred stock could possibly be eligible for re-sale into the market. Bottom Line - It could possibly be 6-8 months before ANY of the common shares underlying the preferred could be sold into the market! Most of you, I would think, would get SOME profits out before this time period if we see PNEC go to $15-$20, hopefully soon :)). And if the price is higher then, who cares about the convertible? I liked this company when it was $5, I liked it when it was $10. It's the same company, the only difference now is that PNEC has $5,000,000 more. I guess what I'm saying is, with what PNEC has going for it now, and what it has planned, why sell or worry about the share price now? Let the company fulfull its business plan......... Richard