The Jailhouse

[bluedodge51]

Matt you are a big joke, and will you please read this. By: tdiamonds
11 Feb 2005, 04:48 AM EST
Msg. 320869 of 320878
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Newbies - beware the PUMP & DUMP (Part 1)

This is a message I posted for months. Please feel free to check my posting history against the performance of this stock:

http://stockcharts.com/webcgi/perf.html?DNAP

ENJOY:

If you have stumbled onto this message board, I can only hope that the following post helps you to make a responsible investment decision. This is a PUMP & DUMP, at least for the short term. There are certain posters here who make up a rather formidable Boiler Room. They will try to trick you into buying this stock, even though they know it is going nowhere as a result of a convertible debenture financial agreement between DNAP and a company referred to here simply as La Jolla.

The DUMP:

For you to best understand the nature of this PUMP and DUMP, it would probably be better if you understood the DUMP, first. You will need to read the part about the convertible debenture. Please pay special attention to the table (I have posted it below) that gives approximate numbers for various share prices. I think you will find that hundreds of millions of shares will have to be DUMPed into the float for DNAP to get its funding.

http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001144204%2D03%2D008459%2Etxt&FilePath...

This table was based on a current share price of $.05 when published.

% Below
Outstanding....... Price per.......With Discount........#of Shares............%
Market..................Share.............at 20%................Issuable...........Stock

25%..................$0.0375...........$0.030*............259,166,667.......33.87%
50%..................$0.0250...........$0.020*............392,500,000.......43.50%
75%..................$0.0125...........$0.010*............792,500,000.......60.58%

I particularly like this statement:

There is no upper limit on the number of shares that may be issued which will have the effect of further diluting the proportionate equity interest and voting power of holders of our common stock, including investors in this offering.

As a result, there will probably be no news strong enough (Work2Pump has stated as much) to overcome this HUGE dilution, and any run will necessarily be quashed by La Jolla’s DUMPing. Interestingly, the company calls this an investment. The way I see it, La Jolla gets shares at 20% discount to market and then DUMPs them into the float. Part of the profit goes to DNAP and the rest to La Jolla. Just exactly where is the investment? BTW, La Jolla can never hold more than 5% of DNAP shares, so how can they be investing?

The PUMP:

There are two PUMPs into this overwhelming DUMP. One is by the company itself, the other is by the boiler room on the message board.

The PUMP by the boiler room:

This is what the boiler room (Work2play seems to be the leader and Goliath a wannabe who is apparently stuck a bundle) lists as the DD page for new investors (pay special attention to the title):

http://ragingbull.lycos.com/mboard/boards.cgi?board=DNAP&read=304538
http://ragingbull.lycos.com/mboard/boards.cgi?board=DNAP&read=305094

Now ask yourself if that’s what you consider due diligence. If you only want to read half-baked BS that confirms an investment decision, there really is no need for you to read any further. Buy as much as you can afford and good luck to you. On the other hand, if your idea of due diligence means looking at the good and the bad, then you will realize this is no due diligence page at all - just a PUMP sheet to trick unsuspecting investors.

More importantly, the boiler room has been caught PUMPing into a mini-run (destined for failure) even though they knew (a) La Jolla would dump into a run; (b) there would probably never be news good enough to DUMP even the lion’s share of the hundreds of millions of shares La Jolla would have to DUMP for DNAP to get all of the money it is after. That is, they PUMPed knowing that investors would be trapped! Sounds like stock manipulation to me!

The PUMP by the company:

If you are even the least bit sophisticated about investing in stocks, you should realize that with all of the above-mentioned planned dilution the company would have to come up with some fluff PRs.

I direct your attention to the so-called DD page.

1. This one is more fluff than PUMP. The collaboration with the famous genetic epidemiologist was bought by DNAP! Basically, DNAP has agreed to fund a position in the epidemiologist’s lab. The money is going to the genetic epidemiologist, which signifies three things: (a) the genetic epidemiologist is probably bona fide; (b) DNAP is apparently not doing this research in its own lab: (c) DNAP can send shareholders’ money anywhere it wants. Interestingly, if you wanted to fund a position in this famous scientist’s lab, I am sure he would probably be more than willing to accommodate your contribution.

2. This one is pure PUMP! This so-called analyst report cost DNAP $28,000, which, once again, signifies that DNAP can send shareholders’ money anywhere it wants. To judge the efficacy of the report, you might ask yourself why the analyst failed to mention the IMPACT of the hundreds of millions of shares being DUMPed into the float. Would not your own due diligence consider such HUGE dilution to be an important factor before you parted with your own money? Why did this analyst fail to mention the impact? Was it the fact that they were paid $28,000? I will let you be the judge.

Nobody is losing any money.

The quintessential quality of a boiler room is, of course, the attempt to convince the marks that no one is losing any money, when everyone KNOWS they are. Here is one of the boiler room con artists, CosmicLifeForm, trying to convince the board of just that (303943):

I checked my number of DNAP shares and I still have them, so I haven't lost any shares. And I checked my bank account and I haven't lost any money in that either.

Anything else in my securities account is a gain/loss paper game...and you only lose money for real when you sell for less than you bought it for.

Does this liar think a four year old car is worth the same money today as it was four years ago, when it was new - just because he hasn’t sold it? Do you think he tells the insurance company he still wants to pay collision on the new car value (because that's what it's worth, given he has not sold it) I don't think so!

The complete denial of culpability:

Check out what this boiler room con artist, Arch/GCBR, said recently, when the investment started to look very shaky and one long time investor was worried about losing money (post 304728).

If you over extended yourself in a penny stock that is not our problem. It is not DNAP's problem. You knew the risks when you tried to make a millon.

Dont lay that on us---you flat out blew it. I dont want to hear about what the company said or anything else.

If you got yourself in a bind with a penny stock then you have a problem.

Oh yes, the boiler room is right there to PUMP, PUMP, PUMP over 7,000 PUMPs for this guy, but after the company lies to you, the boiler room lies to you, or suckers you into buying when they know La Jolla will DUMP into any run, and you lose your ass - you have a major assss chewing coming from the very same people who promised you da mooooooooon.

I am not a lawyer, accountant, or stock broker, so please do your own DD and invest your family's money responsibly. PLEASE consult a professional before buying or continuing to hold any risky investment.

The truth is out there,
td
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