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To: kidl who wrote (2541)	10/7/1998 12:11:00 PM
From: The Osprey	Read Replies (1) \| Respond to of 4201

Kidl, I've seen this alot where a shell trades down to almost nothing.The company has alot of debt rung up on paper as supposedly there is no money in the pot.So, what does the company do.They change their name and exchange shares of the new company for the supposed debt they have accumulated.Then they hire a promoter to pump the stock and they dump what were once worthless shares into the bid side. Therefore they have exchanged debt(???)for shares and then convert those shares to cash either for infusion into the new company or infusion into their own pocket.Usually this is well orchestrated and after the pump the company does a NR and if it is good they keep it running.If it is bad they unload more worthless shares and the company regresses into the pre-name change position it had before while somebody or somebodies whistle on the way to the bank. Another double twist to this is an exchange of 1 new share for 10 or 1 for 20 of the old company in the new one and a debt swap as well.This is wonderful for the company and principals as it appears then to be worth more to the uneducated as it usually in the case of a 1 for 10 split on a former .01 company ends up opening at .10 and the ask jumps up to about .15-.25.Then they just fill the bid side up to about .20 and then a NR and they run it.Usually it dies a quick death and once again.....you guessed it......Some people sing and whistle to the bank or the next wonderful venture.....It is like they say"You pays your price and you takes your chances"" A person of questionable motives once told me that there are suckers everywhere and the hardest part for him was taking care of all of them.. Have a great day. Osprey