Replies to post #120109 on Encounter Development Technologies Inc. (ENTI)

[DevG]

Here...i'll help....

the share price of PTEL prior to the move, the move most anyone doing an iota of DD knows about, was, what?

a number, right? was that number based on any active trading?

the filling of the PTEL space with the MusicMatrix product, the impending PTEL / ENTI 1:1 divi...that'll be when the "move" in pps will be...more...material...and that's when it'll matter...

if you're a long ENTI getting PTEL divi...and watching it there...

sure, if you're a PTEL holder now, who held when it was what, .25? one might say, cry, "oh no! look at that! but in reality..the market wasn't not there to sell the shares... based on what i've seen..right? right.

important to know the landscape when speaking about things within, IMO.

[nodummy]

I think the biggest thing hurting the PTEL share price besides the anticipated 13 billion plus more shares entering the float 6 months or a year from now is the debt conversion arrangements.

From the last PTEL 10Q:

On April 5, 2011, $25,000 of the debt held in promissory notes was converted into 2,000,000 shares of Pegasus Tel. Common stock.

On May 2, 2011, $2,000 of the debt held in promissory notes was converted into 2,000,000 shares of Pegasus Tel. Common Stock.

Let's do some math.

$25,000 being converted into 2,000,000 shares comes out to $.0125/share. On April 5 the stock was trading at $2.00/share (thanks to some little 250 share buy kicking the price up from $.25/share). In any case it was quite the discount on those shares and it makes you wonder if they were part of the 843,287 share volume on both April 21st and 22nd that knocked the PPS down to $.08/share.

$2,000 worth of debt being converted to 2,000,000 shares comes out to $.001/share. On May 2 the stock was trading at $.07/share. Another extraordinary discount given to a debt holder.

Really makes you wonder how many of those 4,000,000 shares were involved in helping to drive down the PTEL share price to $.008.

Super discounted shares being issued is never good news for shareholders especially when this gross of an example exists.


The worse news of all is that even with $27,000 of debt being paid off since March 31, 2011 by PTEL, PTEL still has at least $146,950 worth of debt Notes unpaid.

With the going discounted rate for common shares being exchanged towards debt by PTEL, $146,950 could amount to hundreds of millions of future outstanding shares. That would reek havoc on the share price. You saw what a volume of 1,000,000 shares traded did to the stock price today. Just think about what hundreds of millions of shares sold will do. PTEL could continue to see significant drops in the share price until all the debt is taken care of.

When is the next round of conversions going to happen? If it follows the same pattern as the first two conversions the next round will be some time in the first week of June (which is now) and could end up being issued at an even lower price than the $.001/share the last round converted to.