Dump The Pump

[Dragynn]

So, not wanting to steadily beat a dead carcass here, and it obviously looks like PFNO is going to do a continuous pump from here until the alleged date of redemption, so it's not quite dead yet, may run like hell, who knows? But.....

Here's the thing, here's a portion of their press release:

To finance the Exploration and Exploitation of the 6.06 million Acre Hydrocarbon Farm-out Agreement in the Republic of Paraguay, ParaFin Corporation was in the process of selling an issue of Preferred Shares. The Subscription Agreement negotiated by ParaFin with the Trustee for the sale of the Preferred Shares allowed the Trustee to pay ParaFin Corporation US$3.63 billion by the delivery to ParaFin of 2,400 Bearer Bonds issued June 16, 2000 dated for redemption on June 16, 2010. Under the Agreement, ParaFin is entitled to 100% of the accumulated interest owed to date.

After the original issuance, these Bonds were acquired by and delivered to a single individual. In an effort to promptly liquidate the assets of this individual's estate, the Trustee of the individual's estate negotiated the Agreement with ParaFin.

The Preferred shares issued by ParaFin have a legend printed on the face of the Certificate stating they are "Redeemable, Retractable on Demand Non-Voting Shares Issue Price US$1,000,000 per Share... secured only by funds from the sale or redemption of the 2,400 5.5% Euro Bearer Bonds."

So if someone were "liquidating promptly" these "acquired" bonds, how liquid is an equity position of roughly 3600 shares of a ONE MILLION DOLLAR A SHARE STOCK? Stock in a company I might add, that's never made a dime of profit that I can see...so basically i'm asking, where's the liquidation? The estate gave away bearer bonds in return for basically an IOU for the same amount? That's liquidation? WTF?

Secondly, ""Redeemable, Retractable on Demand" shares "secured only by funds from the sale or redemption of the 2,400 5.5% Euro Bearer Bonds."
Wouldn't that mean, that you could cash in these preferred shares, leaving the company only with the interest? Not to say that wouldn't be a tidy sum, enough to keep these guys in golf and scotch (it's called "pink-sheets retirement shell game", quite a coup for them), but it's not 3.6 billion they'll be able to keep.

*edit* And ya know, just got to say, it's pretty awesome that the CEO of this company takes time out of his busy schedule to talk on the phone to multiple message board posters, even going so far as to tell them ahead of time when PR's are going to come out...yeppers...very convenient that.