Replies to post #22307 on Marketing Worldwide Corp (MWWC)

[ddineeniv]

Yayyyyyyy, an intelligent, insightful comment. Any one taking notes from class today?

[mdimport]

It doesn't matter to Asher. They're looking to be repaid their $47,500 k @ 8% by November 2, 2012.

The debt is convertible into MWWC common stock at any time at the holder’s option, at the conversion rate of 51% of the lowest three trading days 10 days prior to notice of conversion.

If MWWC is turning a profit, they can pay off the note, if not Asher dilutes with a base of $0.0001.

[mdimport]

Two things to bear in mind on why Asher would want to convert at $0.0001 instead of say $0.0010:

-- A 1-tick move from $0.0001 to $0.0002 results in 100% gain ($47,500 for every $0.0001 move up). The same 1-tick move from $0.0010 to $0.0011 results in a 10% gain ($4,750 for every $0.0001 move up).

-- If Asher shorts from $0.0010 to $0.0001 there's a lot of additional realized profit that can be cashed in at the bottom.

My vote is firmly with the professionals - Asher: $0.0001 by November 2012.