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Microcap & Penny Stocks : AmeriResource Technologies (ARET) -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Jens Tingleff who wrote (4989)	1/5/1999 11:41:00 AM
From: Siber	Read Replies (1) \| Respond to of 7609

Jens, A reverse plus issuing 20MM shares is a share restructure. Now, either they are going to do a private offering or a public offering and I would agree if it is a private offering they could eliminate a substantial amount of fees. However, if this is a public offering they would have to prepare a prospectus. This must be done by a CPA as an opinion would be required. They would also need the assistance of an attorney and a brokerage company to make the secondary offering. I don't know about you, but most CPAs, attorneys, and brokerage houses are in it for the money and they don't do much for free. My husband puts bread (make that steak) on our table doing that very thing. So, may I suggest if you doubt my word check out other companies which have had secondary offerings and see how much they have charged against their earnings. By the way, as I said, they charged against their earnings. They can't just call up the transfer agent and say "go ahead and make a 10/1 reverse and while you're at it issue 20MM more shares". Looking at the financial report put out recently I'm not so sure anyone would buy at .06. Not until they have something concrete (no pun intended) in the works. It would appear they have lots on the table, but as far as we know....nothing has been accomplished. ARET has not let us know that anything has been signed, sealed and delivered (so to speak). I know I'm sounding awfully negative here, but in the absence of word from the company to the contrary that's just the way I feel right now. Furthermore, in my past experience, a reverse split has been the death knell of many a company. Although I am hanging in right now, if they announce that a reverse split is imminent I'm afraid that I would then bail. I would have 1/10 of my shares at .06 for the moment, yes, but without the commencement and completion of a project, any project, to put money in the bank, it would quickly start to sink to our current levels. I'm not prepared to sit back and watch it do that. Last, but not least, based on their last financials I don't see anybody sinking $1.2MM additional money into this company until the company shows the capacity to create a profit not just buy up and shut down companies or hang on to a construction company and bail them out when it may have been cheaper to start a new construction company. At least the new company would not have the specter of bankruptcy which may impact their ability to get bonded. And as we all know, if you can't get bonded you are not playing with the big boys. Again, just my opinion. Regards, Helene