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Microcap & Penny Stocks : LifeOne, Inc. (LONE) -- Ignore unavailable to you. Want to Upgrade?

To: makin_dough99 who wrote (1133)	6/5/1999 1:09:00 AM
From: Mr. Jens Tingleff	Read Replies (1) \| Respond to of 1834

Presence, I noticed you took this for a non reporting entity, actually it is reporting, to my knowledge it is only due to the court actions this has been severely delayed. you will find the link to freeedgar filings in the thread header at the end name change filings there too :-). Talking about delayed filings, this makes me wonder if we will also get the "E" added by nasdaq one of the next few weeks. I have noticed that nasdaq has been active past week with delivering out those "E"'s - AAFGQ->AAFGE - ADGI->ADGIE - Does look as if they are proceeding in alfabetical order. I'd say that it is the preparations for the pink sheets action which is starting. For the record I DO NOT THINK WE HAVE ANYTHING TO FEAR THERE. Here is the explanation for the "E", and a link to my SI thread on SEC rules, where it is stored. ((Advise when following links - Right click on the link and use the choice open in new window, then your browser will open a new window for the link, thus easier to get back to where you came from with alt-tab or simply closing the new window)) ** The letter E as a fifth character in a security symbol indicates the NASD has determined the issuer is delinquent in its required SEC filings. Message 6580782 RE Pink sheets - Niphix (can be found following BLHG's latest press release) is preparing to be one of the new trading houses for pink sheets, and other Inc wanting to be public traded - It is supposed to work the NYSE way (match auction) - Only we do not need the broker!! We will be able to trade online ourselves - Very interesting - They are open for investment in their biz. niphix.com Something to dig into over the week-end is also the SEC rule regarding theese new trade systems - (I'll not be digging into that one as there would be too much headache for me reading the curly sentences :-) ) sec.gov Kr Jens

To: makin_dough99 who wrote (1133)	6/5/1999 4:17:00 AM
From: Puck	Read Replies (2) \| Respond to of 1834

I presume you are familiar with LONE's reverse merger subsidiary spin-out strategy to realize some value from the four shell subsidiaries they have. (If not, here are two links to relevant news releases the company has put out touching on their intentions: biz.yahoo.com biz.yahoo.com ) LifeOne only became known as LifeOne about a year ago. Previously they had been National Affiliated (NAAC) and you can find a complete history of NAAC's reports since Brent Chapel and the Southerngroup took control of them almost three years ago on Edgar. They stopped reporting after calendar Q3 in 1997 because they were in negotiations to settle several class action lawsuits that had emerged against them shortly after they took control alleging sales abuses in the early years after the company went public 1983-1985 approximately. The management which took them public proved to be incompetent and National Affiliated bled losses all during the eighties and nineties until Mr. Chapel and his crew began their takeover in August 1996, which culminated in the finalization of the change of control on New Years Eve of that year. They gave National Affiliated an equity infusion $6.8 mil. and had planned to begin their acquisition strategy immediately. Brent told me that at that time, NAAC had not had an investor relations dept. for five years. During Q1 and Q2 of '97 they turned NAAC's operations around, primarily through outsourcing back office operations with the attendant head count reductions and also salary reductions. They reduced NAAC's overhead expense 60%. NAAC was sustaining loses on underwriting, which is common for health insurers, but had returned to net profitability on the strength of their investment returns. Conseco Capitol Managemant manages their assets. (I'm a long time CNC shareholder, hence my connection with LONE.) Sometime late in Q1 or early Q2 of 1997, some plaintiffs or their lawyers got wind that Nat'l Affil. had received new funding and had come back from its essentially dormant, near death state, and were motivated to serve management with several class action lawsuits as I described before. I presume they didn't file earlier because for so many years LONE had hardly any assets to take. Brent and his advisors failed to detect the potential for these lawsuits in their due diligence and suddenly found their investment in the company, their own personal fortunes, at risk. They settled the last and most damaging of the lawsuits during Q1 1998 and appear to have financed the settlement by making reg. S issuances; although at the time of the issuances beginning the preceeding October, they told shareholders that the proceeds of the issuances were to be used for a couple of acquisitions that fell through. Unfortunately the reg. S debentures were sold piecemeal to various parties, instead of to a single buyer, who were introduced to them by Vengua Capital Management of the U.K.. LONE management believes that some of the debenture purchasers began shorting the stock the day of the purchase, violating the regulations of such purchases, which resulted in their joining a class action lawsuit filed against the seeming confederation of offshore funds named as defendants. Three of the defendants counter-sued them in an attempt to force involuntary bankruptcy last Sept. LONE has settled with two of the plaintiffs in that case by repurchasing the debentures. The third has been unwilling to negotiate with them and the issue appears to be set aside for the present. Management had hoped to catch up in their reporting once the class action lawsuits against them had all been resolved last year but the process dragged on because of difficulties they encountered while switching accountants, a move I am sure they regret. They finally got settled into a relationship with their current accountants and were, I am told, on the verge of catching up on their reporting, when the invol. bankruptcy suit was filed against them. Once again, their tact was not to make any filings while fighting the lawsuit to gain negotiating leverage against their opponents by keeping them in the dark about their financial position. And so here we are. LONE is not defending itself against any lawsuits at the present although they are in arbitration proceedings with one of their debenture holders (Thomson Kernaghan & Assoc.) regarding the alleged shorting and LONE's subsequent refusal to honor the conversion of the debentures. They are currently free to pursue business as usual and have a window of opportunity to become current in their filings. They have two 10-K's and six 10-Q's to get out before that happens.