Service Team Inc (SVTE)

[CashMoneyCarl]

SVTE tech charts still look very promising.

Not wanting to make waves, but what chart are you looking at? The chart for SVTE fas been a flat line for almost 20 straight trading days. How is that promising?

On another note, I did listen to the recorded interview with CEO Cashman again this morning. He is kind of charasmatic and believable, but I do wonder about a couple of things. He seems to be in a hurry to convert all the notes and says he now has the funds in place to operate without having to issue any more convertibles. Sounds good longer term, but I just don't see it.. maybe the next financials will show it to me.

Cashman also said that sometime this spring he is going to start spending $10,000 a month to buy back shares. This is a great idea, as the float is over bloated now from the convertibles. However, there are regulations in place about share buy backs. If I am not mistaken, and someone please correct me if I am, for a buyback to be legal what they need to have is net assets after accounting for the Company's liabilities and any amounts due to preferred shareholders. In short, the company needs to settle their debts first.

The reason is that a stock buyback is considered to be a distribution to common shareholders, and by law, they are only allowed to distribute assets to common shareholders that are actually owned by common shareholders. And common shareholders only own the assets that are left after all debtors and creditors are paid in full and the preferred shareholders are satisfied to all amounts due to them (in many cases, that would not only be unpaid dividends, but also any liquidation preferences, which can often be very large - up to multiple dollars per share).

Bottom line is there has been a significant uptick in penny stocks announcing "share buybacks", and I have yet to see one that is actually permitted to do so by law.

Here is a link to the interview if anyone is interested