Reality Wireless Networks (fka RWNW)

[oilfan1]

Clearstation------ RWNW Symbol seems suspect.

[osignal2001]

W3

You are right but we have seen it all in this market...nothing would surprise me, either way!

Risk vs Reward!

Good Luck,

O

[W3Research]

Analysis by Sterling rather rosy? ...

First of all, it all depends on if those Share
were truely "Naked Shorted". If they were then
maybe some of his ideas are correct, but if the
the Shares were just Sold legally then I think
that his price pojections are way too high.

[osignal2001]

rover RWNW: I can only give the BCIT example as what can happen, that co had no revenues and a few M outstanding and look at its history…traded 100’s of M’s in shares while they scrambled to buy em back…………….so nothing would surprise me!

WE do know that for all of the transactions to take place the controlling parties would have to hold at least 51%, otherwise shareholder approvals would be needed. The original merger documents says that no material changes can transpire with the old company prior to the merger(right after the last rs)……far fetched that only 10M is in the float….not at all. These mm’s are totally out of control with the manufacture of “false paper” when they need it, IMO.

The time is nearing where the books will have to balance and I hope his analysis is right on.....BCIT had no revenue’s……were at 30M and growing…..IF DD is valid this could be the stock you hear stories about!........Will lightning strike twice for me, had a ton of HLSH on the plummet to .22 some time ago, still hold a big position...it will be 15 in a few years!

Good Luck,

O

[Rover_az]

Hey O - I saw this one. The only thing that catches me and thus confuses this equation is the proported float he's assuming, which we know to be wrong. Just from the people willing to share on RB.....many of them hold more than 9 willion each. I have sold down my position some but held 5 mill myself last week. Tskinner held 12 mill. I don't think this has been shorted to that extent. Have we appeared on reg sho lately?


Anyway - his figures are fantasy, but fun to consider. I believe the float to be about the volume that we traded just today.

Let me know what your thoughts are.
P.S. Brutal day today. Much bloodier than even I anticipated.

[osignal2001]

POWER Analysis by Sterling on RB

RWNW**Understanding the Potential…

I have broken down this post into three parts. Please make sure you really understand everything in “Part 1” before going on to “Part 2” to fully understand everything in “Part 3” and to help make sure that I am not seeing something that is too good to be true. Part 3 will be the most powerful part, but again, understanding Parts 1 and 2 will help in understanding how I got to Part 3.

Part 1
Before the merger info, the outstanding shares (OS) for RWNW were 385,185,321 as indicated in the latest 10Q link below:
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=3665156

Then after filing the form S-8 in the link below with the SEC for 112,500,000 shares, the new OS should be considered being 112,500,000 + 385,185,321 = 497,685,321 shares.
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=3666824

The company has made it known that current RWNW shareholders represent 2% of those 497,685,321 shares outstanding. At first thought this sounds horrible, but it is quite the contrary. It tricked me a bit too if it makes you feel any better.

The remaining 98% of RWNW shares going to the new reverse merging company equates to 487,731,615 shares.

That shareholder’s 2% equates to 9,953,706 shares. This is the maximum amount of shares that should have always been in the Float for the public to buy.

The share structure must remain as has been filed with the SEC because of the consistency required for reverse merger purposes to establish official accountability of shares from all merging entities.

This means that only 9,953,706 shares should have been allowed to transact as the “total” amount of buys between the Depository Trust Company (DTC), our brokerage companies, and the Market Makers (MMs).

Let me better put it like this; this means that after all of the buying and selling of RWNW shares, at the end of each day, only 9,953,706 shares should be the total that’s in all of our brokerage accounts combined. Well, since the announcement of this merger, hundreds of millions of shares have been bought and held in all of our brokerage accounts well above the legitimate Float of 9,953,706 shares.

Imagine if only 10 of us bought 1 million shares to total 10 million shares bought. That would mean that the Float would be gone and that somebody probably has some naked shorted shares. The MMs can’t have naked short shares sitting in other peoples when the time comes to transact the shares by the distribution ratio.

The MMs will have to buy those shares that have been naked shorted to account for them as they have been fictitiously and electronically created. This is the covering that should take place until enough shares are sold by us current RWNW shareholders to assist them in covering.

Under section 3.5 of the 8K previously filed with the SEC below, the 98% of shares going to the newly merging company will equate to 47,200,000 shares. This means that from doing some quick math, 47,200,000 shares equates to 98% of 48,163,265 shares. This means that the complete outstanding shares post reverse merger equates to the 2% (us) + the 98% (them).
http://www.pinksheets.com/quote/print_filings.jsp?url=%2Fredirect.asp%3Ffilename%3D0001144204%252D05...

Unless I missed something, the OS for RWNW post reverse merger will be 48,163,265 shares. This means that there will be a reverse split ratio of 497,685,321 ÷ 48,163,265 = 10.33 shares. So the ratio will be a 1 to 10.33 reverse split ratio.

Another way of looking at it is that for every 10.33 shares of RWNW that we buy now, we will get 1 share of the newly reverse merging company. So when you go through the filings and all of the PRs, the 2% and 98% breakdown of distribution percentages really only equate to a 1 to 10.33 reverse splitting of our shares as a worse case scenario.

The 48,163,265 shares minus the 47,200,000 that’s listed as what the 98% equates after the reverse merger equates to 963,265 shares. Multiply this by 10.33 to verify to see if it matches what 2% of the current OS and you get the a very close 9,950,527 shares which are only slightly off by a few decimal places falling short of less than 3200 shares pre-split. This is a normal margin for error.

When I called Saudi Arabia to speak with the CEO, Dr. Faidl, I didn’t understand why he was telling me that this is a great deal for the current shareholders of RWNW, but now I do.

Now, before going any further, please go back and review what I have mentioned thus far because the next two parts I reflect upon will seem too good to be true. So please review to make sure that I am thus far making sense.

Part 2
Review some key points below that were brought out in previous PRs to help see why I like this reverse merger scenario better than any of the other ones I previously mentioned:

http://www.knobias.com/individual/public/news.htm?eid=3.1.728e84966cba5977e27259de76b8db7d276a261e90...
* The merging company generated $29 Million in revenues for the year ended December 31, 2004.
* The merging company is a well established Saudi Arabia Transportation Company that has been around for 25 years.
* The Auto & Equipment division imports and sells commercial passenger vehicles from Mercedes Benz, Toyota, Mitsubishi, Hyundai and Volkswagen.
* The merging company has contracts with sole agents of Toyota, Nissan, Mitsubishi and others to transport new vehicles throughout Saudi Arabia.
* And more…

http://www.knobias.com/individual/public/news.htm?eid=3.1.df78a71909a905766455c2d17a8f19cfa7e2b803f5...
* The merging company anticipates generating $7 million of annual revenue from this acquisition.
* And more…

http://www.knobias.com/individual/public/news.htm?eid=3.1.6b2e85d6f97ba42364c37b62ca51e7a829de8ea217...
* The merging company anticipates that expansion of ARCO TEL will result in 24 sales outlets throughout Saudi Arabia and profits of $25 million per annum within a 12-16 month period.
* And more…

Part 3
Let’s now apply some fundamentals from the facts from the revenues we know that have been and will be generated. From looking at the amount that was publicly given to us in previous PRs, it appears that RWNW will be generating $29 Million to $61 Million per year. It was mentioned that the company expects to clear at least $25 Million as profits which still could be on the low end. For our purposes, I will consider RWNW only making the low end of $25 Million per year as profits as a worse case scenario. This means that RWNW would net $25 Million as Income to be filed in their financials post-reverse merger/split. From this, observe below to get a feel of where RWNW should be trading at post-reverse merger given the post-reverse merger OS of 48,163,265 as we derived from above:

$25,000,000 ÷ 48,163,265 = .519 cents EPS (Earning Per Share)

Multiplying that .519 cent EPS with a conservative PE Ratio of 12 and you get:

.519 x 12 PE Ratio = $6.22 per share post reverse merger

But wait… 12 is a very conservative PE Ratio that many use to keep from hyping a stock. If you were to use the PE Ratio for the industry that RWNW will be trading under after the merger, the price used could have been 2 to 4 times more than the $6.22 post-reverse merger share price.

From the thoughts I shared above, the reverse merger/split ratio will be about 1 to 10.33 so we will round off by saying that for every 1,000,000 shares you buy pre-reverse merger, will be converted over to 100,000 shares post-reverse merger for simplicity sake.

This means that if you bought 1,000,000 shares at yesterday’s closing price of .0026 cents, you would have paid $2600 for them. From the above logic, your 1,000,000 shares would convert to 100,000 shares and have at least a fundamental value of $6.22 per share as I had shown above. This means that your $2600 investment could potentially bring you back a return of:

100,000 x $6.22 = $622,000 (Back in return from original $2600 investment.)

The key is to find the current pre-reverse merger price of equilibrium to know where the price of undervaluation for buying RWNW no longer exists. I would want to know the equilibrium price for pre-reverse merger versus a post-reverse merger potential fundamental price to know where the price increase in RWNW would reach a type of “law of diminishing returns” to where the market for RWNW shares would be over saturated from a particular price level.

I will use a post-reverse merger price of $6.22 per share and the 100,000 share example as retrieved from the info I posted above. The new value of your new position would then equate to $622,000 as from above. This means that you must determine the price for when buying your 1,000,000 shares now in RWNW would be worth $622,000 in value to know when the market should stop buying shares of RWNW. To figure out such, observe below:

$622,000 ÷ 1,000,000 shares pre-split = .62 cents per share

This means that right now from the due diligence that I posted above, RWNW should currently be trading at the .62 cents per share price range pre-reverse merger. This is still conservatively speaking. I know this does seem to good to be true, but this is what I have come up with thus far from doing my DD.

I think when people see the 2% going to current shareholders versus the 98% going to the company, immediately anger and confusion as to why is created. I see it as being given shares of MSFT at $2.00 while it is trading at $25.00 per share. I could care less the ratio as long as me buying a million shares of RWNW now would convert over to that 1 to 10.33 ratio for getting those Microsoft shares as I have just hypothetically mentioned.

Now with all that I posted above, consider again that there is a naked short existing somewhere in the hundreds of millions of shares from researching the volume history. I am guessing that the MMs need to cover RWNW before RWNW actually goes to a market such as the NASDAQ from guessing at the reasons why a 25 year old multi-million dollar company would reverse merge into an already NASD OTCBB trading company.

Again, the above is what I have derived from doing my DD on RWNW. Please make sure you do your own DD and please feel free to correct anything you find that is in error. I really believe that we have something here with RWNW to bring about huge prosperity to many as I have always hoped for.

All is well!
http://www.sterlingsclass.com/

Sterling

[oilfan1]

Sure , High Risk Hign earn.....

[osignal2001]

Obviously all must realize there is a big element of risk here, we are a .002 cent stock......not on the small cap NAS at 20.00, you could lose all or you investment.

I’ll recap from my earlier theory/feelings, the recab rights stated in the initial merger agreement were 47M(recab rights), it is my guess that these will convert into the new “treasury stock” mentioned in the amended agreement.

A rs of 1/10 will take the now 500M down to 50M, the balance aprox 2% will be left to the existing shareholders as stated in the merger terms.

It’s also my belief, some of this “capital stock” will be used for growth capital like an IPO, after all they have 30M in rev’s and growing to 50M IMO, this will open many options for them.

My bet, if the restructure does progress like this shareholders, even after a 1/10 will be very very happy.

As a side note and question for all, why would a rapidly growing company that has built a reputation (15 year old established company) overseas and now trying to make an entry into the US capital equity markets destroy all of this by turning into a scam penny stock? I don’t think so! Remember…the old management is OUT, the new kids are in town!

IMO If you thoroughly review the last few PR’s issued by the new company, its aspirations are way beyond what most can or have even imagined, this could turn into something very big.

My take on the action today………..allot of mm funny stuff…..we most like will get a new trading symbol and a rs……shares better be legit and the mms know this…..again legit at conversion time or they (mm’s) could be in trouble…..were they trying to buy back non-existent shares as cheap as possible? Don’t know but time will tell!

Some of my thoughts only, all have a great weekend!

O

Ps FWIW I added more today!

[oilfan1]

i bought 500,000 yestarday , wainting for .01 cents.
Good Luck to all

[drbobc422]

volume climbing day by day...RWNW is in BIG INVESTORS RADAR

[drbobc422]

volume climbing day by day...RWNW is in BIG INVESTORS RADAR

[drbobc422]

arabs here with interests..small float..$30 million revenues (market cap $1 million is UNDERVALUED)...wirelles sector HOT

THIS IS GOING TO EXPLODE!!!!

[drbobc422]

in with 200k today...this looks good

[osignal2001]

D Yes

My head is still spinning from it....outside of the true effective date of the merger and this:

The amendment provides the acknowledgment of the parties that the Effective Time of the Agreement is August 19, 2005.

and

From “at closing" to: “ As soon as practicable following the Effective Time”

1. MERGER.
1.1. Effect on Capital Stock. As soon as practicable following the Effective Time

Not much except it now looks offical...this is very good!

Yet still some risk in the capatial restructure....you never know....good luck to all!

Have a great night,

O

[Rover_az]

Everyone is chatting over at RB tonite. Come over and look at some of the posts. Let us know what your opinion is as well. TIA

[Doubledownga]

O do you still read the new 8k the same as before??? The leaglese still makes me nuts. I did repost your merger thoughts on RB... someone was making a real mess explaing of what they thought was going to happen. You explained it the best of anyone.

DD

[osignal2001]

RWNW repost RE Merger dragon-Wow that sure puts things into the “bigger picture” perspective. As a side note, if you add up all the revenues the PR's discussed they could be doing 70-90M in sales in a short time frame………another Wow! From a market cap quick calc....that's like .06 today and .19 down the road a little.

Looks like the market/investors did not feel the merger was real (co has had some false starts in the past) then out of no where BAM a big winner.....this looks great!

500M * .0026 = 1.3M Market Cap Today!

500M * .06 = 30M Market Cap (aprox today merger co)
500M * .18 = 90M Market Cap (12 months merger co)

Best of luck,

By Dragon: here is another look at this...

chart showing ready to blast off... everything is in place for a move up... oversold big time... obv gaining.... money coming in.... all good.

http://stockcharts.com/def/servlet/SC.web?c=rwnw,uu[g,a]diclyyay[pb50!b200!b25!b13!b5][vc60][iut!lb1...

[osignal2001]

Morning all, still waiting on the re-org final word!

The merger doco mentions 3rd week of Oct as target!

Good luck all,

O

[Ubertino]

I, too, think that the NANN involvement may well be as a convenient shell to something with value such as IMBT. And RWNW may well be a shell, too, albeit with some wireless background that may fit the Saudis' interests in that field.

The Saudis have three prongs of interest:
1) The bio/food stuff - IMBT.
2) The quarry stuff, and
3) Their wireless interests

How all this plays out over the next while will tell the tale. Intuition tells me that NANN and RWNW are shells - stepping stones to the US stock market for 1, 2) and 3).

[Doubledownga]

Nanopatent I looked into this company( NANN) due to the fact the CEO of Rwnw is on the board of directors and vice-versa. That to me and added to the companies (RWNW) history of doling out millions of shares then reverse spliting numerous times was a big red flag.

However the Arabian Recab looks to be a bona-fied company with a decent history. They appear to have revenues and I feel they entered into the merger to have ability to install wireless and phone service in Saudi. They may possibly want a presence in the US. Bailing out a not so great shell may be the way to achieve that.

Bottom line is I think there is something to RWNW and the merger, it may go big BUT I have my doubts as to management's abilities. As shown in the past, they have not been too stellar. I am approaching this as a 100-1 shot and put my money down. If Orisigls projections are right I will be happy....If not that's the risk I took.

I am not into Biotec I don't think the sector is worth looking at; as homeland security and O&Gas are hot now. Check out HMSG, srgx, or AMEP these are solid companies, no rampant dilution, honest management. These are less than 1 year old companies and showing revenues with more coming.

All of this is my opinion, do what you think is right but I would not mess with NANN. Invest in RWNW if it won't kill you to POSSIBLY lose money. Otherwise look for a more solid company to place your money into.

DD

[Ubertino]

IMBT looks interesting. I'm not a chemist/nutritionist/bioengineer but they look interesting:

http://www.imbt.org/

I don't know enough to know if it's for real or what but they look serious enough and competent - BWDIK. In this field they could be saying up is down and black is white and I wouldn't know it.

Read these (you'll see what I mean, I think):
http://v3.espacenet.com/textdoc?CY=wo&LG=en&DB=EPODOC&IDX=WO0074693&DOC=deb45b02a960....

http://v3.espacenet.com/textdoc?DB=EPODOC&IDX=GB2379875&F=0

If you pressed me I think I would say that this could be the holy grail of all stocks of all time. How would one take advantage of this? Buy NANN or RWNW or both or what?

I Googled the inventor, Christopher Jeremy Leonard and found he had his driver's license terminated July 3, 2004 in the UK! That was it!

Arabs, a one man band running NANN and RWNW - a former fireman named Steve Careaga - mergers, alliances, money, stocks everywhere, inventions, inventors losing their driver's license - I expect a movie would be required to do this justice!

I found one other patent mention of a Christopher J. Leonard (don't know if it's the same guy but the subject matter looks similar - complex biochem) here, in the US in NJ:
http://appft1.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PG01&p=1&u=%2Fn....


I did particularly like (being a green believer) of turning waste products of all kinds into animal feed and increasing their health in the process. Kinda doubling (!!) your benefits all around.

[Doubledownga]

O look at the names on this pr let me know what you think...

Amenni Signs Letter of Intent to Acquire Premier Research and Development Firm
Tuesday October 4, 10:00 am ET


GIG HARBOR, Wash., Oct. 4, 2005 (PRIMEZONE) -- Amenni, Inc. (``Amenni''), which merged with Nannaco, Inc. (OTC BB:NANN.OB - News) (``Nannaco'') on July 21, 2005, announced that it has executed a Letter of Intent to acquire Immune Macro Biotic Technology Limited (``IMBT'').
IMBT is a premier nutraceutical research and development company. IMBT has initially focused on developing a product aimed at the poultry marketplace. IMBT's initial product, set to launch in the fourth quarter of 2006, is designed to be mixed with animal feed in order to improve immune systems, assisting in the fight against fungal, viral, bacterial and parasitic diseases. Amenni intends to use IMBT's expertise to develop and release additional animal-feed additive nutraceuticals thereafter.

The animal-feed additive marketplace accounts for several billion dollars of revenue annually. Poultry (specifically chickens) are particularly vulnerable to potential disease, making the initial IMBT product likely to be well received in the marketplace.

Using IMBT technology, Amenni will thereafter produce a range of nutraceuticals and functional foods that boost human and animal immune systems by assisting the body in its fight and defense against fungal, viral, bacterial and parasitic diseases. Furthermore, Amenni will develop a range of nutraceuticals that enhance animal and human health, through the provision of a range of naturally produced vitamins, unsaturated fatty acids, protein, trace elements and antimicrobial peptides.

Amenni believes that IMBT's Technology, allied with their transdermal patch expertise, will create new treatments for chronic illnesses. A series of clinical trials are planned to begin Q3 2006. The development and roll out of these new, innovative products into the multi-billion dollar nutraceutical market will be by Q3 2007.

Amenni is a premier developer and manufacturer of nutraceuticals - naturally sourced biologically active components for human and animal health benefits.

In addition to Ft. Lauderdale, Amenni has facilities located in London (United Kingdom), Dubai (United Arab Emirates) and Zurich (Switzerland).

``We are pleased to have concluded this Letter of Intent with IMBT,'' said Patrick Lochrie, Chairman of Amenni. ``I anticipate prompt completion of this transaction, which provides a strong foundation enabling Amenni to achieve its ambitious business objectives of ongoing nutraceutical product development and partnering with our premier global distribution partners.''

Steve Careaga, CEO of Nannaco, expressed excitement at signing the Letter of Intent. ``We are delighted about this opportunity to combine with IMBT,'' he noted. ``Amenni has demonstrated its ability to operate successfully in the multi-billion dollar nutraceutical marketplace.''

About Nannaco, Inc.

Nannaco, Inc. previously provided surface cleaning, surface protection, surface restoration, and other services to commercial and industrial businesses, as well as to owners of historical buildings. The company has moved to a new line of business as a consultant and advisor to customers and is seeking to improve its financial position through the acquisition of or merger with companies capable of providing the best value to its shareholders.

NOTE: Information contained in this press release, other than historical information, should be considered forward-looking in nature and is subject to various risks or uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on the operating results, performance or financial condition are the company's ability to achieve and manage growth; the company's ability to successfully identify suitable acquisition candidates, complete acquisitions or integrate the acquired business into its operations; the company's ability to attract and retain qualified personnel; the company's ability to secure necessary financing; potential litigation by shareholders and/or former or current advisors against the company; the company's success in securing third-party commitments, production agreements and/or licensing contracts; the company's ability to comply with federal, state and local government regulations and/or unforeseen changes in federal or and government regulation; and the company's ability to develop new services; and other factors discussed in Nannaco's filings with the Securities and Exchange Commission.

For further information, please contact Steve Careaga at 253-853-3632, or send correspondence to 4916 Point Fosdick Dr., Suite 102, Gig Harbor, WA 98335.



Contact:
Nannaco, Inc.
Steve Careaga
[phone]


--------------------------------------------------------------------------------
Source: Nannaco,

[osignal2001]

I get dizzy after a few pages myself! (lol)

See if this link takes you to the filing!

Have a great day,

O

http://www.pinksheets.com/quote/print_filings.jsp?url=%2Fredirect.asp%3Ffilename%3D0001144204%252D05...

[Doubledownga]

I don't consider myself a stupid person but this legaleese stuff makes my eyes glaze over when I read it. LOL

Do you have a link to the merger docs?

I can loose $2400 here just as at Vagas and don't have to pay airfare, I think the odds maybe better here. I have lost money on big "safe" companies.... so pay your nickel and go for the ride...

DD



"If you are not living on the edge, you are taking up too much space."

[osignal2001]

My feeling on the Recab Rights is how the merging company defined ownership in the private company today…..IMO this old ownership rolls into shares of the new public company!

Per the PR’s, I believe these other companies are wholly owned subsidiaries of the existing private company…..seems they will add aprox 20M in rev’s to the bottom line.

I agree on your risk assessment...we got some here, if the R/S doesn’t go as I want, but IMO better than Vegas..(lol)

IF the company truly is all legit and wants to emerge out up to a higher exchange in the future, then my hope of 50M authorized would provide the legitimacy needed to potential investors.

O

"all outstanding Recab Rights shall no longer be outstanding and shall automatically be canceled and shall cease to exist, and each holder of an Recab Rights shall cease to have any rights with respect thereto, except the right to receive the portion of the Reality Shares to be issued in consideration therefore in accordance with this Agreement."


From Merger Doco's:
D. All issued and outstanding Arabian Recab capital and ownership rights ("Recab Rights") (other than shares to be canceled in accordance with Section 1.1(b)) shall be converted into fully paid and nonassessable shares of common stock, par value $0.001 per share, of Reality representing, on a pro rata basis, approximately 98% of the fully diluted number of shares of common stock of Reality to be issued and outstanding immediately after Closing (the "Reality Shares"). As of the Effective Time (defined in Section 1.2), all outstanding Recab Rights shall no longer be outstanding and shall automatically be canceled and shall cease to exist, and each holder of an Recab Rights shall cease to have any rights with respect thereto, except the right to receive the portion of the Reality Shares to be issued in consideration therefore in accordance with this Agreement.

3.5 Capitalization. The authorized capital and ownership rights (previously defined as the "Recab Rights") of Arabian Recab Inc., at the Closing Date, shall consist of 47,200,000 Recab Rights. All Recab Rights of Arabian Recab have been duly authorized and validly issued, and are fully paid and nonassessable. All of the outstanding Recab Rights (and options to purchase such Recab Rights) and other outstanding securities of Arabian Recab have been duly and validly issued in compliance with the laws of Saudi Arabia. Except as set forth on Schedule 3.5 there are no outstanding or authorized subscriptions, options, warrants, plans or, except for this Agreement and as contemplated by this Agreement, other agreements or rights of any kind to purchase or otherwise receive or be issued, or securities or obligations of any kind convertible into, any Recab Rights, ownership interests or other securities of Arabian Recab, and there are no dividends (or similar rights) which have accrued or been declared but are unpaid on the ownership rights of Arabian Recab. There are no outstanding or authorized stock appreciation, phantom stock or similar rights with respect to Arabian Recab. Recab Rights are duly authorized and validly issued, fully paid and nonassessable. Recab Rights are not subject to any preemptive rights or other similar restrictions.

[Doubledownga]

Thanks for getting back to me. I sort of felt that this may be the case and got 1M at .0024. Most everyone thinks this is a "share printing press company". My feeling was as more gut than substance... because you have a company that just did a 400:1 RS which is usually the kiss of death for even a good company...why would supposedly smart people take large blocks of stock instead of cash from a perceived POS. I got to digging an then found your anaylsis which helped a great deal to firm my opinion. This is still very risky because there are a lot of if's that have to come together, but this could be a big sleeper. IMO How does the granite mine and polishing factory fit in... is that part of the arabian co?? Also who is Recab Rights I am fuzzy on that.. TIA

DD



"If you are not living on the edge, you are taking up too much space."

[osignal2001]

A MERGER Theory: FWIW Updated a Little!

I find it interesting that the “merger terms” call out for the new company to have 47.2M Recab Rights converted to shares of the new company. This 47.2M is key to my evaluation!

Today, the new outstanding since the 1 for 400 in May 05 is now 498M in the form of S8’s issued to the lawyer(s) and aprox 3/4 management/consultants that most IMO likely finalized/constructed the new merger arrangement, the float is estimated right now at 170M, the balance IMO was used for the merger.

Now...The merger document also talks about Recab (new company) owning 98% of all outstanding shares at the time of the completed merger!

That’s 498M less 98% = only 9.96M outstanding in today’s numbers…..Now “if” the lawyers and management/consultants “did not” sell all of their S8 shares acquired after the recent reverse split in May 05, but instead used blocks of them as part of the this NEW merger agreement…...a very large portion of that 98% ownership comment for the new company is already secured and locked up.

If true, IMO the mm’s could be in very big trouble as they are IMO trading way way more than the issued, is this phantom stock??? Check it out…..another BCIT??? IMO The difference with the RWNW merger is that the merger company has big revenues estimated from 30-50M to start, this is huge!

My best guess is that once the merger is complete, a 1 for 10 will go down, giving the new company 49M shares or the 98% (Recab rights converted) held and only 1M remaining on the open market, the revenues floating around are 30-50M+ for the new company even after a 1 for 10, the shares out would have to trade at roughly .85ish to give the proper market cap.

Soooooooooo an example post merger example could look like this:

1M held today divide by 10 will give you 100,000 shares of the new entity at and at 50M in revenues the share price could be .85 to 1 giving the company a valuation roughly equivalent to its new market cap………..that a 8 to 10 bagger based on today’s price.

Check it out!

Not a recommendation to buy or sell, my thoughts and opinion only as always,

O

RWNW Some DD, Validation: Merger Candidate is a "25 year old Saudi Arabian company focused primarily on the transportation industry" Who is the 25 year old company???? Think I found it!

From PR:

ARTC (and its predecessor organization) is a 25 year old Saudi Arabian company focused primarily on the transportation industry. For the year ended December 31, 2004, ARTC generated more than 111,750,000 Saudi Riyal (approximately $29 million USD).

Just a peek at 1 part of the DD!

http://www.mesteel.com/cgi-bin/w3-msql/goto_comp.htm?url=recabtrading&file=show_comp.htm

Some common names between the two companies………

http://www.ebizasialink.com/listing/details.asp?mID=18574&mType=&varPageNum=341&list=tru....

[garrett800ca]

Not at the moment bro, if I could get some more money from GVRP, I could buy the Empire State Building.

[Doubledownga]

I looked at this company and they did a 400:1 reverse split then gave out a ton of shares instead of cash to pay for stuff. Correct?
I 'm not too swift sometimes, but what you are saying is this merger with the arabian co will result in the arabian co (which is a good co) converting the OS of RWNW to 1/10 of the OS now?
But the value of the arabian co is good so that will in effect increase the value of the shares we will own over and above the reverse-split price?

This company is like a chinese puzzle Thanks for any help...

DD

[Rover_az]

Garrett - Are you jumping back in yet? It's looking GOOOOOOOD!

[garrett800ca]

They're playing the stock up and down, some people probably making a fortune doing that if they time it right.

[mberto]

It's amazing


the chump change people sell for when the possible merger pay off will be huge.

[Rover_az]

UP TO DATE NUMBERS

A/S 500,000,000
O/S 498,000,000
RESTRICTED 17,000,000

I believe the float is 159M

[coolwaters]

Hi new here, Could anyone tell me what kinda of split they had on 5-27-05 and what is the os and the float now. tia

[m2jny]

watching again

[garrett800ca]

Eating crow, LOL

[Rover_az]

Where is everybody?

[osignal2001]

More Shhhhhhhhhhhhhh Sneek peek II: Notice the operations manager for prior link: This is all in public records....follow the trail...

IMO This is very real...good times ahead!

http://www.ebizasialink.com/listing/details.asp?mID=18574&mType=&varPageNum=341&list=tru...

Good Luck,

[osignal2001]

Shhhhhhhh: "its predecessor organization" WHO?????

"A 25 year old Saudi Arabian company focused primarily on the transportation industry"

http://www.mesteel.com/cgi-bin/w3-msql/goto_comp.htm?url=recabtrading&file=show_comp.htm

From PR:
ARTC (and its predecessor organization) is a 25 year old Saudi Arabian company focused primarily on the transportation industry. For the year ended December 31, 2004, ARTC generated more than 111,750,000 Saudi Riyal (approximately $29 million USD).

For reference only, please do your own DD!

O

[osignal2001]

A sneek peek...shhhhhhhh!

http://www.mesteel.com/cgi-bin/w3-msql/goto_comp.htm?url=recabtrading&file=show_comp.htm

Good Luck,

O

[make_money]

Watch it carefully this week...news are on the way

[bigghunn420]

$$$RWNW$$$watch by monday sometime.0069comin$$$

[Rover_az]

Definative yes, however the ticker has not changed nor has the new share structure gone into effect

[osignal2001]

Upcoming Merger Analysis:

Nice summary from poster on RB (below), the only exception I note is the RS, I believe it will be 1 for 10…the reason, the merger document mentions 47.2M “Recab Rights” that will be converted to RWNW shares, so 500M / 10 = 50M satisfying the 47.2M number for Recab. I do agree with the eventual value, so take your shares divide by 10 then multiply by aprox 1.50, IMO this is where I feel the stock will be when the dust settles as a start, if they put together 100M in revenues 3.00 is reasonable.

IMO many, most are missing what could go down here!

Good Luck…………O

From Merger Document:
“3.5 Capitalization. The authorized capital and ownership rights (previously defined as the "Recab Rights") of Arabian Recab Inc., at the Closing Date, shall consist of 47,200,000 Recab Rights.”

Here’s the target date:
“(d) by either Reality or Arabian Recab if the Effective shall have not occurred by October 22, 2005 (the "Upset Date") provided, however, that the right to terminate this Agreement pursuant to this clause shall not be available to any party whose failure to fulfill any obligation of this Agreement has been the cause of, or resulted in, the failure of the Effective Time to have been reached on or prior to such date.”

Post from RB:
Hey Tyril Be happy I saw the the 2% reverse split u r mentioning...it is not like the regular reverse splits..it will be done so that it is in tandem with the merger...and i did a quick maths to figure out what it may be like...i dont know how good am I in maths..but I may be quite close..

At present we have in total around 500 million stocks....If there is 1:50 reverse split..that would reduce the no. of stocks to 10 million...Take todays stock price of .0023..After the price the stock price would be .0023*50=0.115...Now the market cap of Arabian Recab is around 30 million so the stock price would be $3..Lets say Saudi Arab company has 50% stocks (I am not sure how much it would be). Then also your stock is going to fly at least 10 to 15 times from 0.115 to $1.5...

So eventually this stock is going to explode in my opinion...I think nobody understands it right now clearly and MMs are taking advantage of that...

Its just my thinking and opinion...may be evreyhting is true, may be nothing is true so do ur calculations before coming to any conclusion..

I think I am gonna load more....I never did this calculation..I was thinking people are hyping but doesnt seem like..

[Tanail]

isn't the merger final ?

7/28/05 10:01 AM Reality Wireless Networks Executes Definitive Merger Agreement With $29 Million Diversified Trading Company - Business Wire

thanks,

B

[Rover_az]

Tree - are you there? I've heard two sides of this. I thought I would throw it out to get additional feedback.
I do think that this is a definate as it says, but how it will it ultimately translate?
Hopefully positive as it is to coincide with the finalization of the merger which in itself will bring much needed confidence.

[Tanail]

i'm not sure I understand this .... are we getting a RS ?

B

[Rover_az]

"2.4 Schedule 14C. Upon Execution of this Agreement, Reality shall prepare and file with the SEC a Schedule 14C to disclose to shareholder approval of the following:

(1) Reality 's authority to enter into, consummate, and take all action necessary and proper to effect this Agreement;

(2) A reverse split of the issued and outstanding Reality common stock (the Reverse Split") such that the pre-Merger Reality shareholders shall retain a post Merger, post Reverse Split ownership interest of not less than two percent (2%) of the merged entity immediately following the time at which the Reverse Split becomes effective.

[garrett800ca]

why is it down today ?

Hmmm, good question. Maybe some more DD is in order, lol.

[Tanail]

i did that same caluclation for CRGO...... figured it should be at least .06 ... the market didn't think so

I'm thinking about buying some of this... why is it down today ?


B