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Microcap & Penny Stocks : Short Squeezes -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Forthright who wrote (139)	10/13/1998 12:02:00 AM
From: Spider Valdez	Respond to of 182

>UNDERWRITER M . H . MEYERSON AND CO., WHICH HAS A RECORD OF DISCIPLINARY ACTIONS AGAINST IT, BEING TAKEN PUBLIC BY STRATTON OAKMONT INC., WHICH HAS BEEN SUED BY THE SEC FOR SECURITIES FRAUD (STREETWALKER) (COLUMN) A NEW ISSUE WITH BAGGAGE. By Amy Feldman 01/03/94 Forbes Page 268 Copyright Forbes Inc. 1994 HERE'S A SIGN that the new issues market may be peaking: one penny stockbroker taking another public. The underwriter: Lake Success, N.Y.-based Stratton Oakmont, Inc. (FORBES, Oct. 14, 1991), currently being sued by the SEC for securities fraud and coercive sales tactics. The firm it's taking public: Jersey City, N.J.-based M . H . Meyerson & Co. The offerings is for 2 million units, consisting of one share and two warrants, which will equal 40% of Meyerson's equity and trade o-t-c. Expected asking price: $4 per unit. If the offering goes through, and assuming full conversion of the warrants, Meyerson will have raised $32 million. What do investors in the company get? According to the registration statements, for the fiscal year ended Jan. 31, 1993, Meyerson netted $823,000 (17 cents per pro forma share before conversion of warrants) on revenues of $16 million. In the seven months ended Aug. 31, profits were $1.3 million on $12.6 million. But only briefly mentioned in Meyerson & Co.'s registration statement is the firm's disciplinary record. The firm was founded in 1960 by former car salesman Martin Meyerson, now 62. In the 1970s Marty Meyerson promoted the shares of tiny Micro-Therapeutics, Inc., which claimed to make a cream that could cure male baldness. In 1977 the SEC sued Meyerson and his brokerage for manipulating the price of Micro-Therapeutics stocks and then destroying the trading records. Seven years later they settled with the government after being found liable for $1.6 million. More recently M . H . Meyerson & Co. agreed to pay fines to settle violations for entering Nasdaq quotations with excess spreads and shorting shares for a customer without first checking if the stock in question could even be borrowed. The public offering will leave Marty Meyerson and his family very much in control. Thanks to some new supervoting Class B shares, the Meyersons will retain 71% voting control while owning just 48% of the equity. Stratton Oakmont will get commissions of $800,000 a seat on the Meyerson board and options to buy 200,000 units for $4.80 apiece. But Meyerson's & Co.'s registration statement warns that Stratton Oakmont may peddle a "significant amount" of those units to its own retails customers. Buyer beware. Talk : Web/Info : K-Tel (KTEL) Have the cheesy '70s records come to an end? > > \| Previous \| Next \| Respond \| > > To: DarrenS (52 ) > From: Louis Riley Wednesday, Apr 15 1998 11:08AM ET > Reply # of 2383 > > << ...Remember the float is just 4 mill. ... >> > > Sorry, but that is incorrect. From recent 10-Q filing: > > << ...At February 9, 1998 there were outstanding 3,815,609 shares of common > stock,$.01 par value per share, of K-tel International, Inc... >> > > Of those ~3.82MM shares, only 900,000 trade actively (the float). > > Small supply + Huge demand = Mucho dinero for longs. ;) aznt float is only 720,000. like pizza man, jb oxford delivers! lololol spider