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Re: emulwa post# 23035

Sunday, 08/13/2006 7:25:39 AM

Sunday, August 13, 2006 7:25:39 AM

Post# of 213004
Partially correct.
That's if you held your shares thru the CD conversion.
The timing is the issue. Even currently, PAIM is trading at 20times what originally it sold for. Plus, as with PAIM, I believe with SMMW, the short shares disclosed by Buyins.net is less than the real # of shares shorted and more imp., naked shorted. Buying stocks such as SMMW and others is a timing issue. By SMMW buying back as many shares as possible, and likely more than the total shorted, forces naked shorts to pay whatever they can for shares or face fraud charges with new regs, as with PAIM. Eliminating O/S count creates the squeeze.

By buying and selling the shares prior to the CD conversion, a trader can make 5+X initial investment with naked shorts covering, without having to have CD conversion constraints. However, a smart trader would utilize the CD conversion and sell some prior to for immed. profit, and if believe in the co., go ahead and hold the converted shares thru duration and make major money. And, again, if a strong co., can convert CD shares to common shares all or part at any time and make money also because pps of common would continue to increase regardless.

The pps of SMMW will retain its value as with PAIM by the company eliminating the O/S count and even at higher pps(with PAIM @ .0022), the naked shorts still must buy to cover. CD's do help eliminate common shares, but if its a strong company, the pps will retain its value regardless of shareholders converting to common. Example is PAIM. After announc. of CD conversion, if all shareholders dumped their shares, converting to common shares, why then is the pps still 20X original inv of .0001? Strength of company and still naked shorts scrambling to cover.

Plus, to say the investor is out the 45K sounds like a loss,but if I sold my shares and reinvested in something else with the $, I would make likely 10X the $45K over the next 5 years. So, the investor has a choice dependent on the quality of the company and continued success or not.

Best of both worlds. Immediate profit and possible long term very large profit, or I can sell, my discretion. With SMMW, looks like some long term solid upside potential.

GLTY, Best Regards

Not a buy or sell recommendation.