Health Discovery Corp (HDVY)

[sunspotter]

As you may have gathered, I'm a bit of a "glass half empty" guy when it comes to penny stocks that are long on PRs and short on revenues.

I hope you'll forgive me, then, for presenting the "glass half empty" perspective on this latest piece of news.

The words that should set alarm bells ringing with curious investors are the following:

"AMHDC to Receive a Significant Equity Position in the New Company and Royalties Paid on a Per Test Basis from Breast Cancer Tests Performed"

I suspect (and would welcome a factual correction if I'm wrong) that it should read:

"AMHDC to Buy a Significant Equity Position in the New Company and Receive Royalties Paid on a Per Test Basis from Breast Cancer Tests Performed"

The deal will be set up that HDC will buy a minority equity stake in this new company for a some of money that will be unclear until the next 10Q or 10K is filed. The sum of money paid will be agreed by allegedly independent valuers, and will be justifed to shareholders by the promise of the future royalties from the breast cancer test in development.

For the cynics among us, this serves two purposes. It gives an alternate focus for the hopes and expectations of shareholders if and when the PC test does not meet expectations.

Secondly and more sinisterly it provides a ready excuse to transfer cash sums from the publicly quoted company HDC onto the balance sheet of a privately held LLC.


Those of you familiar with the skein of public companies associated with the privately held LLC, Technology Innovations (TI) will not need reminding of how the owners of that company used theit inter-company relationships to syphon off tens of millions of dollars worth of shareholders' money to a small group of private individuals.

The effect on two of the publicly held companies concerned, Biophan and Natural Nano, is as follows:

http://finance.yahoo.com/q/bc?s=BIPH.OB&t=2y&l=on&z=m&q=l&c=nnan.ob,%5EIXIC