Aventura Equities Inc (AVNE): With the WNSH Article & Mark Ellis&#8230...

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Thursday, 07/19/2007 4:35:38 AM

Thursday, July 19, 2007 4:35:38 AM

With the WNSH Article & Mark Ellis…

The thoughts below are centered on the article below:
http://www.ocregister.com/money/winsted-ellis-company-1768715-stock-manzo

The link above confirms that the WNSH shell was sold for $2,000 for strategic reasons. If I had to guess, Mark Ellis was in some big trouble with the SEC and needed to get out from under the ownership of WNSH very very quickly. From whatever trouble he was in, he just wanted to get from under the heavy scrutiny from the SEC.

He sold the WNSH shell so cheap for a few reasons in my opinion. First, the bulk, if not all, of his problems probably centered on the things done while using WNSH and/or the WNSH shareholders as their mediums for wrongdoings. To sell for so cheap the WNSH shell, Mark must have wanted out of WNSH very bad. Second, he could still capture the same or better profits as he would have captured from selling the WNSH shell at much higher prices. He knows where Appletree is fundamentally going to take the price of WNSH.

I understand now even more from reading the article as more clue lights have been turned on. Mark Ellis has bought either the majority of the float or the entire float as what he informed me of what he/they were doing. I didn’t think much of it at the time months ago, but now I really understand why.

Selling WNSH for $2,000 was an outstanding plan because he knew that he would not just simply give up something for nothing. Mark knew that he could make his money back from within the OS and outside the OS because of the value of the company he was allowing to be brought in. Mark would make his money back on selling shares of the float and naked short shares he bought after the price substantially increases from significant valuation being placed into WNSH. This is why Mark chose Appletree Capital.

Take the below scenario for an example to consider and visualize what I think is going on here with Mark Ellis selling Appletree Capital the controlling interest in WNSH for $2,000.

With what WNSH is talking about doing, they are mirroring the business plan of CMGI in acting as an incubator to transform and grow companies from private to public realms. CMGI trades on the NASDAQ at $1.80+ per share. A good example would be to imagine CMGI valued as it is today, but existing only as a private company for now only for this example.

Now imagine that CMGI wanted to go from a private company to a publicly trading company within the market. If you had some connections to get the word of CMGI’s desire to go public, you would make them an offer they could not refuse versus them taking the expensive IPO route or buying a good clean shell.

You would tell them that you would sell them the WNSH shell for $2,000. You tell them you are selling it so cheap for logical reasons as CMGI would be unaware of researching further certain details because you would know of CMGI’s inexperience in the penny stock world. They would have no idea that you would just want to get out of everything as soon as possible because you know that just getting out from under the ownership of WNSH is how you could move on with your life leaving the scrutiny from the SEC behind you.

However, you want to make CMGI think that you are a very nice guy who is giving them a good deal, but you really don’t want to just give it away without getting anything paid in return from what you know a real shell or any shell would really cost. You tell them a few little secrets of 1 or 2 skeletons in the closet about the company that they would have to fix. After all, you don’t want to make the deal look too good. For at/around $2,000, CMGI sees it as an awesome deal after researching how much it would cost for them to IPO or to buy a good clean shell. So they buy it; WNSH!

Now, with the above example I used with CMGI, replace “CMGI” with “Appletree Capital” and maybe you can see what could be transpiring right here in front of us. Hopefully you understand the magnitude of what could transpire and greatly appears to be too.

The deal is consummated with Appletree Capital as the old CEO, Mark Ellis, buys up the float while not making such public knowledge. Quietly, the Market Makers (MMs) help by continually naked shorting WNSH because Mark have convinced them through its history of dilution and reverse splits that WNSH is never going to amount to anything.

Now you get with your buddies to explain the plan so that they can buy up the float (for you) so that none of the shares bought can be traceable in any way shape or form back to your name after being bought back from the open market. Your buddies love the plan and buy back the float and some. This explains some of the high volume days in the past where a total of billions of shares traded at the ASK while not having a BID. Again, nothing would be considered wrong for these actions because the shares would not be able to be traced back to Mark for the shares he bought; or maybe I should better state such as the shares he had somebody else buy for him.

So in reality, Mark Ellis might have done us all a favor on one hand by getting the inventory of shares to zero and/or in the red. We really should thank him as if it was not for him, we would not have ever researched WNSH or been in this WNSH situation. He could have been stubborn about many things. His departure did wonders as we will later talk about the 90% portion of the deal that is unclear to some of us and maybe Mark too as far as what he still might needs to do to really be done with WNSH and the SEC.

With this plan, everyone comes out a winner; Mark, Appletree, and the shareholders. We all should win and win big because the covering from the expected huge “demand” of our WNSH shares will come into play in my opinion as the MMs will need to capture the “supply” of WNSH shares they allowed to exist by increasing the bid to prices high enough to entice us to sell for them to balance their books, especially if a quality dividend is done right to force an accountability of WNSH shares with the MMs, TA, and DTC. This is another story, but I will talk about this later in the future.

As more legitimacy is revealed from the new WNSH and more buying pressure comes in, the MMs are going to eventually see the decision to cover as soon as possible by increasing the bid to get more sellers to get more WNSH shares out of market circulation. This will keep them from covering at higher prices the sooner the MMs do this. After all, 28 Sep 07, is right around the corner to where all naked short shares/Failure to Delivers are to be covered. The above are my opinions as to what I think could have transpired as an option.

I do not know Mark Ellis personally, but he didn’t seem like a bad guy although he has a reputation along with some other things that might lead one to think different. Just remember though his major role in making this Appletree deal happening. If for some reason Appletree would have chosen to go elsewhere or use other means for going public, we probably would not have ever been investors and believers in WNSH as were are today.

v/r
Sterling

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