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Re: livinginstyle post# 8337

Wednesday, 02/14/2007 5:55:02 AM

Wednesday, February 14, 2007 5:55:02 AM

Post# of 143047
Livinginstyle, about your thoughts…

Some of your thoughts do hold merit, but... The way I see it, all should understand the greater risks that are involved with playing the penny stocks versus your major market stocks. If not then, they eventually will, one way or another, learn from some type of experience. I will always “try” to help, but by all means, I am still a rookie. Please see me as a guy who knows nothing, but will always try to help.

Normally… the greater the risks… the greater the rewards. That is why we are here in penny stock land as opposed to investing in companies that are already established within your major markets. We are looking for major ground floor opportunity for risks for major rewards. Many are not here for 20% to 30% gains for the year. That’s for people who are already millionaires who got millions to invest. Or for those who chose to be a bit more conservative in nature.

Currently CHNW is crawling. I think they are positioning themselves to go from crawling to walking. Soon after, considering that all expectations take place as we anticipate, they will be jogging. If things go as planned with the FOREX, then we all hope that the jog transforms into a run.

Having two years worth of financials usually means something of a huge magnitude from a pink sheets stock.
http://www.pinksheets.com/quote/finance.jsp?symbol=CHNW
If I had to guess, I do think they are quietly positioning themselves to go to a higher exchange. I think first it’s the OTCBB that they are going for. The current share structure will not be that significant for trading on the OTCBB. Consistent filings and increasing Revenues will be primary.

I see CHNW then staying on the OTCBB for about 1 to 2 years if things go as planned to allow for significant Revenues to be generated as continuity from the FOREX market to position themselves to meet the AMEX, NASDAQ, NYSE, etc. requirements. This will be a good while from now and after being established on the OTCBB for a long while too while trading at an established higher price level if I had to guess.

I do not think that we have to worry about a reverse split here with CHNW, but if they are going to reverse split us in the future to get us to a major exchange such as the AMEX, NASDAQ, NYSE, etc., then I think we all would appreciate such. This would mean that enough Revenues are being generated to meet the Market Capital requirements. That would be for a positive reason which is very different from those negative reasons why penny stocks normally do a reverse split.

Some people are worried about a reverse split in the penny stock world because normally the reason for doing such is to continue a pattern of dilution and ripping off shareholders. That is what we often see dilution for reasons other than in the best interest of shareholders.

Please don’t take what I’m saying as that the company is going to do a reverse split. I do not think so. I am just saying that reverse splitting a stock for major market implications to go to the AMEX, NASDAQ, NYSE, etc. is definitely not a bad thing, but actually quite the contraire if things happen as you suggest for a worse case scenario. Most penny stocks fail as the odds are already against them, but this is the risk we take as believers in what they are trying to achieve. Hopefully everyone understands this.

v/r
Sterling