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MichaelMir

04/07/12 1:26 AM

#29206 RE: Majobuki #29205

Here's what I find interesting:

I looked very, very, very closely at their financial statements for the calendar year ending 12/31/10. The company reports that it converted all of its debt into shares of stock (hence convertible debentures, cd's). Folks, according to those financials the company was loaned a combined $4,000,000 from 22 investors who then converted that debt owed into shares--billions of shares! Each investor, along with the amount of shares received, are listed on those 12/31/10 financials.

After studying the data for hours and building a spreadsheet in Excel, I realized that roughly 82 billion share (nearly the entire O/S at the time) are held by these 22 investors, Raley and Watford among them with 45 billion combined shares of their own.

Ask yourself--why would these investors each gamble several hundreds of thousands of dollars on a pinky? One investor alone loaned the company $2.1 million and received more than 7 billion shares in return. Why invest so much money in a struggling company? Why take so many shares ? Why buy into such dilution???

Unless of course they have confidence that their shares will ultimately rise. Perhaps they're planning to collectively return and cancel a TRUCKLOAD of shares to rid the dilution? This is why I'm hanging in there. I find these details extremely curious. We may have lost some money on this, but there are 20 investors named neither Raley nor Watford whom have dropped SERIOUS cash on this pig. I can't imagine these investors would lose hundreds of thousands of dollars without first addressing the share structure. I predict a massive return and cancellation of shares because it's the ONLY way the remaining shares can return a profit to the 22 risk-taking investors.

Please don't insult me. Don't tell me I'm crazy. I certainly don't wish to read nonsense from Eddy2. I encourage lively respectful debate. I think I've read those financials more closely than most on this forum. My thoughts are not far-fetched.