Elite Swing Trades

[SwingKing]

First, congrats on the win and I got your PM.

I'm not a FREE expert but I've got a lot to say. I wanted to make sure that the guys posting on my board were not going to be harmed by what I had to say so I kept it to myself. I did however warn AB and tried to do the same with you. I also made this post at 9:06 A.M to try and warn the followers that don't post.

I would be selling FREE right now if I had it, I would most certainly be selling today if it runs. IMO FREE is a sell and I wouldn't touch it again for a while, again just my opinion but wanted to make sure all of the folks on the board know how I feel.

All I kept hearing leading up to the open was FREE eliminated $30 million in debt. We'll that's not entirely true because it's not done yet and more importantly they forgot to properly explain how the debt "will be" eliminated.

Bottom line: They're using the legal system to get rid of liabilities by buying down debt in exchange for forgiveness, just like you or I could offer a creditor $500 if we owed them a 1000 to close our account and not make us pay the other $500. It's one of those I better take what I can get or I may not get anything type deals. The only difference is they're using a middle man to broker the deal and for their efforts they get a cut of the "savings" associated with the debt reduction. A perfect example of this was the "Hanover Deal". We now have the same exact thing happens again only this time it's twice as big and the middle man is Crede.

One final note, I forgot that in order for all this to happen FREE is sued by the middle man in a US court and than the court ordereds FREE to pay the middle man, all owed monies, in free trading shares. They than sell the shares into the open market until the debt is settled. So while everyone is running around saying FREE just reduced $30 million in debt, they're balance sheet is going to look great, this is going to the moon.

In reality what they should have been saying is "We need to get ready for another round of massive dilution". My guess at this point is about 40 million shares will be sold into the float before this round of dilution is over. So we'll see some manipulation to cause bounces and we'll see "support" show up at some point so they can continue to sell the shares at a decent price. It turned out to be .17 to .20 during the "elimination of debt" sponsored by Hanover. If they don't put in a floor during the dilution well you can figure that one out. Oh and one more thing, the shares issued to pay down the debt are exempt for registration under SEC regulations so that creates another problem in itself but more on that later.