Arete Industries (ARET)

[MSEED]

O/S count 284+M shares per T/A

Per Compushare Trust Co., the T/A for ARET, O/S count as of 8/26 was approx. 284M shares. Currently, is same.

I do not believe a co. needs to get delisted from OTCBB to pink status on purpose to start dilution. Many OTCBB companies have done just that.

Pink/OTCBB plays are based on alot of momo, whatifs, and chart technicals, with MM's always leading the way, either up or down. I have played this stock over the last 3 months and gained substantially on 3 runs from .006+ to .015+-. So have other smart traders working the system.

ARET was not tight lipped and a tell you nothing co. They were trying to get a merger toghether over the last few months and it did not materialize. Then recently, they went after PBR Energy, (who needed cash) and bought out the 4.5Mile line to 33 wells in the Powder River Basin. This acquisition is verifiable thru PBR Energy. ARET is a player in oil/gas and yes, does not always perform. However, I believe with this latest acquisition and possible others, esp. in the Powder River Basin (one of the largest natural gas reserves in the U.S.); creates some possible upside.

Dilution in any of these pinks/OTCBB stocks is possible. To not buy unless you sure their not dumping would have you miss the last 3 runups, and solid gains shortterm.

Good luck to you.

Best Regards

Not a buy or sell recommendation.