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Replies to #4667 on FACT-N-FICTION
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ICEMAN1CO

02/04/07 2:57 AM

#4668 RE: NOHYPENOBULL #4667

If I may................

"PROMOTING STOCKS

You guys are so quick to jump all over this subject so I figured I would throw some intelligent stuff out there for you to think about. Take it slow I am wide awake and I have alot to say. Lets clean the slate here."

***Intelligent or your opinion? Lets just leave it at Opinion for now shall we...Just want the SLATE to be clear as you begin..........

You are the CEO of a public company that has a great product, service or piece of technology. You worked on the infrastructure for several years and now you aready to go. The company has limited funds because of all of the R& D and the costs associated with being a publicly traded company. Auditors accountants, attorney fees, filings, rent, and salaries. So we can all safely say that the burn rate on some of these companies is exhausting. So what do they do? They have to be funded in some way don't you agree? Otherwise the doors will shut and all of the work that was done will be a total waste. You as the CEO are desperate at this point and you look at your options.....

Raising money with Equity

You feel that your stock is worth something, and why wouldnt you raise money with options and warrants? Give a discount to the market, restricted for a year right? Guess again...
The company trades on the otc at 2 cents and has a daily volume of 20,000 shares. Company never has pr's and is clueless. They cant do a private placement because the stock has No liquidity and is not attractive to investors. (THIS IS IMPORTANT)


Meet the Devil

Knowing you really need money, you get a call from Bill Buckley of the Super Duper Fund on Wall street. (ficticious name)
He claims taht he loves your company and cant believe that your not on the Nasdaq already (meanwhile he could care less and has no clue what you do) You are in his office and you see all these fancy Wall street Screens and your totally taken by his professionalism. Heck for all you know this is how Warren Buffet operates. Thats when you sign a deal with the devil. Its called a convertible debenture. And thats when your company is finished. I will explain why.

The holder of the debenture can convert up the wazoo and the stock never moves. A $500,000.00 debenture on a .01 cent stock is a death spiral. So you can forget your dreams for your company and its shareholders. Mr. Super Duper Fund now owns you!

This is the END of that scenario

Now lets get to the othe scenario. I will make it quick..

You are the CEO of a public company and you have a great product, service or technology and you are ready to take it to the market.

You know that you 2 cent stock never trades and nobody knows you exist. What do you do? Hmmmmm Cant go to the major Networks, they are too expensive. Remember, we are running out of cash as I type this and we need to do something. We cant advertise on Radio or in magazines...No cash yet! WE WILL NOT GO TO A HEDGE FUND.....I am a smart CEO. I have a fiduciary responsibility to all of my shareholders. Who buy the way, helped us get started. I know I am going to need to do a private placement but my stock is dead and my company is unknown? What do I do?

The CEO has to do what is right for the company and the shareholders and he uses stock as a form to pay to promote the company to put it on the map. Will he meet an honest promoter is another story. Thats for another time. The subject here is promotion. And there is nothing wrong with it. If you own a stock and it trades 1000 shs a day and its dead you pray for the day a good promtion starts. There is nothing wrong with it. As long as the site discloses its fine. Everything we see is promoted and hyped to the max. Wake up this is the information superhighway guys. As for the crooked sites that promote? They hide behind an alias and they never disclose their name and number. Keep that in mind.

***And Would you care to SHARE the PPS of SHRN,PLRS,TSSR and ETLC for everyone here now that you have explained everything...keeping in mind the FIDUCIARY RESPONSIBILITY of those CEO'S and how he was keeping the SHAREHOLDERS in MIND?

***You are entitled to your opinion here and I strongly DISAGREE with your opinion because ANY COMPANY with a good product can find decent FINANCING and a TOUT site or PROMOTION site is for one thing..the SELLING OF SHARES and the FACTS show even with the limited examples I gave you above that the STOCK PROMOTIONS DID not help those companies take their products to the next level etc and do the advertising etc that you speak of...it only HURT INVESTORS in the long run...the only ones who BENEFITED were the TOUT SITES...the 3rd PARTIES who PAID THEM and or the COMPANY who PAID them to ARTIFICIALLY inflate the stock price and sell the FRONT LOADED shares into the RUN UPS.....GOOD COMPANIES who are cash POOR who have good products or services dont need STOCK PROMOTION or TOUT SITES..........EVER....and that is my opinion..........