American Rare Earths and Materials Corp. (fka AREM)

[piece90]

here is a another good read, a person with reason and common sense:

Posted by: VistaViewer
In reply to: Tomrob508 who wrote msg# 242 Date:9/24/2006 1:53:34 PM
Post #of 879

Tomrob508, I think that everyone here is expecting...

...something very good to come out of the upcoming E21 Spaceshot and the surrounding noteriety and press releases, etc. That is definately the next major waypoint on this journey.

But keep in mind, the company just issued a form S-8 to register another 20,000,000 shares:

http://knobias.10kwizard.com/filing.php?repo=tenk&ipage=4382080&doc=1&total=&back=2&....

So now they have the shares needed to sell into whatever rally might be coming. I realize that this S-8 is earmarked for "consultants" and "employee plan", etc. but that has always been the traditionally easiest way for companies to issue new shares. Once they have them in their treasury they have a tendency to be used for other purposes. But no matter who receives them, you can be fairly certain they will be sold soon.

I have heard that the SEC is no longer as tolerant of this liteweight abusive practice, and is actually clampling down. Earlier this year the SEC issued a public memorandum that new share registrations would no longer be automatically granted based solely on the filing, but would be reviewed and subject to reversal.

My personal hope here is that the SEC will do the right thing and step up and CANCEL or delay this recent S-8 registration before the Space shot. If that were to happen then the company would NOT have the shares to dump into the ensueing market rally, and cap the upside. Instead, the only shares available would be in the hands of longs. Then the longs would have the profit opportunity they deserve and have waited for so long.

As most everyone knows, this dilute-pump-dump scenario is common practice in the penny stock market, for many years. I just wish it wouldn't happen here NOW. If it does, it's just "business as usual".

Just my opinion...

VV