Replies to post #22688 on Phoenix Associates Land Syndicate (fka PBLSQ)

[monkeyfrog]

Pretty funny- sorta- I remember talking about this scenario in July with you- now parts of it seem damn likely- Hmmmm


Posted by: monkeyfrog
In reply to: None Date:7/13/2006 10:36:47 AM
Post #of 22690

An interesting scenario can play out here witht the company buyback proposal and cert deal-

Lets suppose this drops to around .025 or below for awhile [ it is July after all] eventually some shareholders are gonna say " ok dammit! I'm requesting my certificates and at least getting my .03 for them from the company" Now several things start to happen- I think it can take up to 90 days to recieve your certs- with 30 days being the minimum from most brokers - and then per the company PBLS will pay within 30 days of receipt of certs- so figure 2 month turn around minimum to get paid . If enough people request there certs as the price languishes the float is decreased by a substantial amount. And I don't think you can unrequest your shares after the request has been processed. So in the meantime the company sees the float reduced and guess what-? they release some positive news and stock actually starts to move up.
Now PBLS gets a couple nice benefits- they get a lift in share price maybe to lets say .04 or better. Then likely even those who requested certs and have sent them in for redemption will be actually buying more on the open market not wanting to miss the next run. So the company sells some shares on the next run banks the money and is able to buy back the shares with the new found money.

Just some wild speculation but not much else to do with information being so closely guarded.