Conversion Solutions Holdings (fka CSHD)

[THE LURKER]

Concerning the SB-2 from Furia Dec/2005


http://www.sec.gov/Archives/edgar/data/757563/000114420405040479/v031809_sb2.htm

Furia made a deal with AJW Partners, LLC which as Serfdom has pointed out tends to be a bad deal for the investors. The deal basically kills the PPS and has the potential to kill the company.

Now I direct your attention to page 17 of the document. The company states:

"The continuously adjustable conversion price feature of our secured convertable notes may encourage investors to make short sales in our common stock, which could have a depressive effect on the price of our common stock"

Remember this is December, 2005 when this is written. The stock was at .20 and O/S is 66,882,721.

If I was going to short a stock, or naked short sell a stock, this would be a dream come true. The company just made a deal with a group known to drive companies into the ground by "exercising their warrents", the odds look like 100% that this company couldn't possibly succeed, I could short the stock and naked short sell it to death because it very likely will be bankrupt very soon.

The only thing they didn't count on is a reverse merger that could change the whole picture of what this company is.

Shortly before the merger the stock was at .04 but the O/S was roughly the same. Obviously the warrents were not excerised yet but the stock dropped 80%. Why?

IMO there has been massive shorting on this stock and this may very well be the reason it was "The right stock at the right time."