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Non-Tech : MILLIONAIRE. COM........( MLRE ) -- Ignore unavailable to you. Want to Upgrade?

To: Bear Down who wrote (1260)	1/7/1999 1:55:00 PM
From: Blair P. Houghton	Read Replies (1) \| Respond to of 2664

Re New rules for OTC BB companies Cool beans. About damn time. Every mom'n'pop pop-stand can keep a set of books. Might as well give every investor with a web-browser the ability to check up on his property. On the questions, did you ask these of Steve Samblis? Did he tell you they were unanswerable? No. 1 is pretty clear. No. 2 may or may not be any of our business, depending on what the SEC said about disclosure; the buyer may have seen some value from the anonymity; on the other hand, having watched the OVIS/RMIL debacle, any funding that's on the order of the market value of the company is suspect, and I'm with you in wanting to know the details. No. 3 should also be answerable. Did Steve say why he couldn't answer it? No. 4, however, is a bit whacked. I don't know of any lenders who are stupid enough to collateralize on a borrower's stock holdings, especially stock that can't be liquidated during the first year of the loan. Brokers can run margin accounts only because they can sieze and liquidate the collateral at will and immediately, so their risk is near zero. But these MLRE-insider shares can't be sold. I'd think that precludes transfer to a lending broker for sale to cover a margin. So the broker couldn't collateralize on them. If he did, he'd be in worse shape than I am on this deal. No. 4 also asks about certificates. Who holds certificates? I've had exactly one certificate in my name in my entire life. That was a company stock-participation plan distribution that I used to open my first brokerage account. From then on, it's all been electronic. --Blair