pj,
Let me make sure I understand this:
1. Pike, who late in your post is described as "a guy who knows the ropes", buys 100,000,000 shares at a 30-40% discount to the market.
2. Pike the rope-knower readily accepts the representation that they are his to trade at will.
3. He shorts an equal amount of shares and pockets the cash.
4. He is then shocked to read in the financial section of the NY Post that there may be some chicanery going on at the company in which he made his discounted purchase.
5. Upon further research he realizes that he's been had! One cannot buy shares at a 40% discount and have those shares be afforded the same treatment as any other shares.
6. Pike is P.O.ed. Someone must pay for his ignorance! He tells M&M that he's going to hold those shares no matter what they say! (I can't have this right, but "holds the original 100 Million shares hostage"?). And he makes some kind of deal, which I DEFINITELY don't understand.
6. The company is required to file the registration of its shares at the end of September. He subsequently files a Form 3 indicating that he is a 10% beneficial owner in spite of his net position of -0-, reflecting the discounted 100,000,000 share purchase.
7. He commences to buy shares in the open market, with the intent of covering....or covering as he buys....the original 100,000,000.
8. He achieves a 20% ownership position and files a Form 13D accordingly.
9. He files Form 4's and Schedule 13D/A's showing his accumulating shares as he buys them.
10. When he reaches 100,000,000 shares accumulated at an estimated $.045, the above forms will show that he holds 200,000,000.
11. He covers his short position and returns the original 100,000,000 to the company, neither of which result in a filing.
This leaves him holding a couple forms showing that he owns 200,000,000 shares that he no longer owns and, using your estimated pps's, $1,500,000. (BTW, the math showed that his original 100,000,000 shares cost him a little better than $.13, so if the rest of it is right, he's actually a couple mill in the hole).
Is that so?
Did Virtual put you up to this?
Things just haven't been the same since they canceled Picture for a Sunday Afternoon, are they?
:o)
