Aventura Equities Inc (AVNE): 4 Thoughts on the Recent News... htt...

Reply Private New

Replies (7) Next 10 Prev Next

Send PM Follow Ignore

Followers	5213
Posts	24015
Boards Moderated	5
Alias Born	09/20/2000

stervc

Re: None

Wednesday, 07/18/2007 4:23:21 AM

Wednesday, July 18, 2007 4:23:21 AM

4 Thoughts on the Recent News...

http://biz.yahoo.com/bw/070717/20070717006039.html?.v=1
It was solid. Bottom line, we have 3,620,241,722 shares issued and outstanding. That's better than the 4 billion shares that we thought we had confirmed. So, fundamentally, we are in a better position than before when value is placed into WNSH. I have broken down the PR into 4 different ways to interpret some solid thoughts for consideration. Please consider…

Thought 1
With the 90%, as a best case scenario, it leaves 10% remaining meaning 10% of the 3,620,241,722 shares issued and outstanding leaving a float of 362,024,172 shares. This is the most simple of ways to consider though there are those who see such is up for debate due to the vague wording within the PR.

Or…

Thought 2
The company could was trying to say that they thought the float was 400 million shares at the time the deal was done which was why they thought that the OS was 4 billion shares. This would leave confusion as to why an earlier confirmed float of 400 million shares, represents the 10% or the remaining shares from a confirmed 3,620,241,722 shares issued and outstanding. This means that the company was trying to tell us within that PR that the float is still unsure and officially confirmed, but it is better than the 400 million shares initially thought but is a disparity from what they have in writing.

Or…

Thought 3
Maybe the deal and paperwork was already done by accountants, lawyers, etc. already for the 90% of the control to be transferred from Mark Ellis to Appletree Capital. What if Mark Ellis was planning on transferring over those certain portion of the shares after the deal was done, but instead had sold a portion of that 90% of the shares because he needed the money? Then it would be exactly as what Art2Gecko in an earlier post in that… “he'll be needing to buy back any shares he sold.” Were these shares in the process to be given to the MMs to help them cover a certain position? The CEO appears to be sticking to the fact that Appletree Capital now has 90% of the OS.

Or…

Thought 4
Here, the thought is that although they are unsure of the true number for the actual float, it is at least the 90% that represents a 51% controlling interest in WNSH that they must apparently have of the 3,620,241,722 shares issued and outstanding as a worse case scenario since they are clearly making key material decisions which will be confirmed once the 8K is filed. This means that the float could be no more than the remaining 49% of the 3,620,241,722 shares issued and outstanding...

...the float is 49% x 3,620,241,722 shares issued and outstanding...

...which equates to 1,773,918,443 shares for the float, but...

... now go and add the volume over the past few months or so since Jan 07 from the historical volume link below:
http://www.quotemedia.com/results.php?qm_page=35660

or

Use this link for a monthly summary report:
http://www.otcbb.com/asp/tradeact_mv.asp?SearchBy=issue&Issue=WNSH&Month=1-1-2007&IMAGE1...

The WNSH share volume was as follows:
Jul 06 = 3,647,142,697 shares
Aug 06 = 1,861,122,727 shares
Sep 06 = 33,331,299 shares
Oct 06 = 1,005,680 shares
Nov 06 = 67,916,995 shares
Dec 06 = 29,068,900 shares
Jan 07 = 22,915,500 shares
Feb 07 = 918,605,739 shares
Mar 07 = 1,268,947,947 shares
April 07 = 1,886,534,465 shares
May 07 = 832,056,893 shares
Jun 07 = 199,653,766 shares
Jul 07 = 2,941,813,261 shares

Total Shares Traded from Jan – Jul 07 = 13,710,115,869 Shares

From Jul 06 up until now here in Jul 07, WNSH had no bid most of the time and up until a day or two ago when the price hit .0009, the price never went as high as .0004 per share. This could lead only to the thought that most of that volume was generated because of WNSH shares being bought. I was also told this by the old CEO, Mark Ellis too although his reputation was not credible within the investing community. Researching the volume history proves that he was telling the truth about that.

Well I can tell you that I have been in WNSH for months and it traded those billions of shares when nobody was here talking about WNSH during such time when Mark had informed many that they were trying to buy back the entire float. I think these are the shares that Appletree Capital is trying to get back from Mark. Once Mark gives those shares to Appletree Capital, then the 90% ownership would fully be consummated.
Again, most of those transactions were buys if I had to guess, but it’s the old management of WNSH that can account for those shares to either give them to the best bidder. I think this is probably why Mark Ellis was so willing to sell the shell so cheap to Appletree Capital to hurry up and get from under the scrutiny of the SEC while still maintaining indirect control since he held the float and some. If I had to guess, he probably sold a few shares.

Because of this, I think further clarification is definitely in order to be released. Even with this thought as a worse case scenario, we have some serious failures to delivers in WNSH to the tune of some billions. Even if you take the 51% controlling interest as the minimum of 3,620,241,722 shares issued and outstanding, you have a total of 1,846,323,278 shares restricted and owned by the company.

This leaves the difference of 1,773,918,443 shares that have been in the float since Jul 06. I think it’s very fair to say that out of the 13,710,115,869 shares traded in WNSH from Jul 06 to Jul 07, half of those shares were logically at least buys. This equates to 6,855,057,934 shares bought in WNSH from such time. The most that could have been available as the float was the 1,773,918,443 shares. This leaves a disparity in shares of:

6,855,057,934 shares bought - 1,773,918,443 shares available to buy (float) = 5,081,139,491 shares naked shorted

This means that WNSH have 5,081,139,491 shares naked shorted that have failed to be delivered. This could be huge. The above are some thoughts that I saw from reading the recent PR. I will continue later with this discussion to talk more in detail about the 5,081,139,491 Failure To Deliver (FTD) naked shorted shares and the magnitude of what this should mean.

As for maybe what Mark has to cover if he really sold those shares (I’m hoping he is holding them somewhere in an account to simply transfer them over to Appletree), he needs to buy back not the complete minimum 5,081,139,491 shares naked shorted, but rather the worse case scenario float of .49% of the 3,620,241,722 shares issued and outstanding which equates to 1,773,918,443 shares minus what represents the float from the deal of Appletree Capital owning 90% of OS having 10% being the 362,024,172 shares. The difference is Mark needing to buy back the amount below:

1,773,918,443 shares - 362,024,172 shares = 1,411,894,271 shares from illegit float

Either way, somebody is going to have to cover as the accountability for shares would be a major issue the longer this waits out. (If this is the case.)

Please re-read the above thoughts and share your input as I am too tired to proofread this, but I think it stimulates some considerations that might have been ignored. The FTDs are something huge that is a must for discussion since WNSH could very have over 5 billion shares that need to be covered. This could have been something in the works months ago from researching the volume history and how it looks like they caught the Market Makers (MMs) off guard.

v/r
Sterling

Sterling's Trading & Investing Strategies:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=29867262