Phoenix Associates Land Syndicate (fka PBLSQ)

[Blitzkrieg9]

Devil's advocate and questions

Let's play devil's advocate, liquidation value going off of December 2005 unaudited balance sheet.

+88mil = total assets
-10 mil = throw out goodwill
-20 mil = mineral reserves only 60% of what PBLS claims
-8 mil = current liabilities
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+50mil = tangible assets
-10mil = -20% on sale of assets at a firesale
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+40mil = immediate liquidation value

Let's further pretend that instead of the claimed 815mil shares outstanding, we have a cool 1 billion shares outstanding. So, $40mil immediate liquidation value/ 1,000,000,000 shares = $.04/share.

So, assuming that the balance sheet is FAR worse than PBLS claims, they have absolutely zero revenues or profits or losses, the outstanding shares are greater than claimed, and they sold the company assets in a firesale tomorrow.... PBLS is worth $.04 per share easy.

So what the hell is going on?

I have two theories, and i believe they may BOTH be correct.

1. What are the terms of the 250mil preferred shares? Are they convertible into 1000 shares of common apiece? Do we really have 251 billion shares potentially outstanding instead of the stated 850 million? I would REALLY like to know what a share of preferred is worth, how many are issued, and what they're worth!

2. I believe we have some SERIOUS fails (FTDs, Fail to Delivers) outstanding. I've been trying to figure out how a compnay can combat this, but i haven't found a good solution yet. And taking your stock from street name into your own name only combats legal, bona fide short selling. Broker/Dealers illegally short sell with wild abandon through FTDs. See this link, if you haven't already:

http://www.businessjive.com/nss/darkside.html

One solution bandied about is to issue dividends, thereby making the B/Ds fork over lots of money and encouraging them to get rid of their FTDs. But that's about the only good solution i've seen.

Thoughts?

blitz