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Re: makesumgravy post# 10606

Friday, 07/14/2006 1:09:26 PM

Friday, July 14, 2006 1:09:26 PM

Post# of 56764
Nobody has responded to my two thoughts... I like the prospects of PAIM... but I just need to questions answered before I try to buy a ton during this slight downturn at .0008.

It's tough to call this a buyback since all the money they used for the buyback is going back out via CD's. The company essentially didn't use any of their own money for this buyback... it appears it is just a scandalous way to do an R/S.

Can someone explain how this increases shareholder value?

At .0006, everyone who was in pre-buyback can liquidate their CD + their original shares at a profit. So, long term, all the shares that were bought back could easily be dumped since the shareholders will want to take the profit.

The temporary reduction in o/s will be met by constant CD conversion since there is no interest on the 5 year tie up of shareholder cash?

What am I missing in my DD???