what I have learned so far, very interesting:
I spoke to an attorney at arentfox who was able to help, after listening to my questions he said he would contact the person directly involved in this matter and would call me back, he did,
he stated that although the 10Q clearly states that the previous shares were cancelled as of 9/8/2006 that it is his understanding that the cancellation has not been completed because of delays and problems with the DTCC, the transfer agent and the NASD (this was his specific description),
I then asked if it is possible that the current trading in the stock is still those old shares and is it possible that my investment will be cancelled and then we debated that a bit,
we concluded that the current trading cannot be the old cancelled shares because of two reasons, 1)the transfer agent and the DTCC would have notified all brokers who showed the stock back in Sept. of 2006 that the shares were cancelled and therefore the brokers would not be trading cancelled shares, and 2) the 10Q clearly states:
State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: As of March 9, 2007, the registrant had 25,029,800 shares of common stock, $.001 par value, issued and outstanding.
I still will call the transfer agent American Stock Transfer and Trust CompanyNew York, NY 10038 Shareholder Services: Tel (800) 937-5449
Tel (718) 921-8124
to confirm what the status of the cancelled and current shares are on their records,
here is my current theory as of this stage: somehow, shorts did not get the word when those old shares were cancelled and sold short millions if not hundreds of millions of shares to investors, what they did not realize is that they were shorting a stock that only had 25 million shares outstanding, which would leave a HELLUVA naked short position here,
the final proof will be contacting the transfer agent, if they confirm that the current shares have a cusip number: 252368105, which is the cusip number that appears in my brokerage account,
then that is the final proof I will need to know that I hit the lotto, however if that is the cusip number for the old shares which were officially cancelled and not yet returned to the company after SEVEN MONTHS because of delays by the DTCC and transfer agent, then I hit the lotto anyway,
because the lawsuit which will ensue will charge the company, the transfer agent, every broker who is selling cancelled shares and the market makers as defendants in a fraud action for making a market in cancelled shares,
EITHER WAY WE WIN.
