Bioelectronics Corp (BIEL)

[Det_Robert_Thorne]

Very aware of what Toxic Debt can do

stockdarockk,

I'm rarely a buyer of pink sheet alternative reporting stocks but do enjoy analyzing them and their business models. More often then not, my business forecasts for these types of companies are pretty solid, but I'm a lousy trader Therefore, I just dig, report and estimate.

Came to this board because someone pumped it on the board of another stock of which I'm critical, then read some posts, and started digging.

Saw all the discussion referring to the TA, so that's why my first post on this board was a response to you about the Maryland filing of the Amendment to the Articles of Incorporation showing the AS raise to 11B. Figured it would be good to show some hard data from a government site that a lot of people wouldn't think to look at.

This one is following the familiar pattern for a Pinkie with a lot of convertible debt. The family connection is a new wrinkle for me, but I'm not sure if it's the worst example of sketchy financing I've seen.

That could be another Pink Sheet Alternative Reporting company which I think uses the following financing method:

1) CEO gets a bunch of shares when company created, making himself majority shareholder, so no need for shareholder meetings

2) CEO sells some of his own shares in open market, making a million or so, but nobody knows about it because it's really hard to see Form 144 filings

3) CEO loans some of proceeds to company to pay for operations

4) Eventually, CEO takes repayment in lots of preferred shares which, after a certain amount of time, are convertible into common shares at a ratio of ten commons for each preferred share.

5) With the company needing more cash, the CEO repeats steps 2 through 5.

Each time through the loop, the CEO becomes a little bit richer and owns a larger percentage of the company, though in the quarterly filings, simply says he owns >50%, and doesn't state the actual number of shares.

Oh, and when the OS got close to the AS, he raised it, then a couple of months later, implemented a 1:10 reverse of the common.

I don't know if that arrangement or BIEL's is the worst I've ever seen.

BTW, another stock I follow has been going the conversion route as the new CEO tried to clean up the mess left by the previous one. It's now at zero bid and $0.0001 ask, with more debt scheduled to become eligible for conversion in a couple of weeks. Therefore, though the CEO says he currently has no plans, I expect a reverse split of that stock soon.

One more thing regarding BIEL: I think that it's now a race between possible FDA acceptance of the ActiPatch and a reverse split.

I'm somewhat betting on the RS