For the Newbies.....

I am saying that you must be 100% ready to lose every penny you invest in Prime- whether it is 4K or 40.

My best guess is that you have a 90% chance of losing all your money.

This is a superbowl bet (in July). Right now 100 bucks on my beloved brownies winning will get you a million. Prime has better odds than that but not much. (the Brownies would struggle to beat OSU 2 out of 3 times)

And unlike the rest of the posters- I'll admit to not knowing.... I could be off an order of magnitude and we could only have 1% chance of success.

Prime could be a scam and since the market cap is only 300K the SEC cannot be bothered. No one here knows for sure....

The bottom line is (and it is not stressed often enough) that this is a gamble and most likely we will all lose our money.

If that is not clear do not invest here.

Truth

Let’s establish a few facts:

1) O/S

We need to put this to bed and move on. The recent pinksheetsDOTcom update stated an o/s of 105 million. We also know that this figure is out-of-date. Quoting from the recent CEO letter:

“Over the past fifteen months we achieved revenues in excess of $2.75 million”

So our average monthly revenue has been $ 183,333. “On a few occasions our annualized revenues were 7-8X that of our market cap which is remarkable.”

Annualized revenue is $ 2.2 million. That places the market cap at 275,000 to $ 315,000.

This is where things get tricky. What do we use for pps? Based on the way Tom’s statement is worded and recent trading ranges I will use .002. My reasoning for this is that while this is not the lowest range lately it is below our current moving averages and must be relatively close to the number Tom has in mind. This number puts us between 137 and 157 miilion o/s.

So what can we conclude?

Our o/s is certainly north of 105 million.

The figure is undoubtably around 150 mil plus or minus 10% and rising. Less than one year ago it was 16 million. But the pps has been so low Tom and Prime have not really benefitted much from this dilution.

This is, what it is and there is no sense in us obsessing (especially me) about it any longer.

2) Busboy The website is down.

We have gotten no updates at all about Busboy. I have received many emails via the blog that Spencer has skipped town and he and Tom are not in contact.

There are many accusations going back and forth from both sides and I have no independent data to back either side.

However, the circumstantial evidence is very strong that BB is dead, just not buried.

3) Funding

“Recently, we have been presented with two very strong and favorable deal sheets from very reputable groups in the investment banking community.”

Again, I have received very strong confirmation that this is a true statement.

In addition, all indications are that Paul is the real deal and once he is properly funded Target can grow to 1 million per month in sales very quickly.

This volume will also generate numerous oppprtunities to decrease costs and expand margins.

xoxoxoxoxoxoxoxoxo

So what does all this mean?

The SEC has looked at Prime and has no evidence that Prime is a scam. Paul is for real and we are generating sales unlike most pinksheet companies.

A plan is finally in place to obtain funding under reasonable terms.

Current conditions allow the purchase of 2 million Prime shares for less than $ 4,000. This stock will either re-visit going to zero (as GT has pointed out many times it is undeniable that early investors in Prime have essentially already lost all their money) or make a big move over the next year to let’s say 10 cents. So, we can spin the wheel and risk losing $ 4,000 for a potential to make 200 grand.

The nuts on the left would say it is a sure thing.

Those on the right would say we got no chance. My odds are 10 to 1 against.

The one for is Paul and a couple of other characters whom are deserving of respect. Four of the ten against is Tom- I know some will freak at this but the track record is clear and we are “hoping” Tom has learned his very expensive (to the longs of which I am one) lessons well. The other six against are due to my buddy McDougal who said Murphy was an optimist. But the upside is 50 times, so in my book the risk to reward ratio is 5 to 1 favorable.

May your glass always be full……

Comments on July CEO Letter

My two week vacation from Prime is over.

I have added some shares at these low levels for the purpose of taking a little off the table when we get a bounce. To those who are shocked by this strategy please go back and read your own posts....

A quick look through the couple of hundred posts (on Raging Bul) from the last two weeks is interesting. Still mostly bickering.

RF4C (RB Handle)- I spent about 2 hours on the phone with the SEC about 3 months ago. They have taken a cursory look into Prime and find the company's practices lacking but find no evidence that it is a scam or that any crimes have been committed. If you have anything new to add that is specific please feel free.

The new deal is encouraging but as always we really do not know enough of the details to talk with intelligence about its implications.

Two things to watch out for:

1) If this becomes a de facto reverse split i.e. 100 pmhj shares = 1 share in New Horizons Telco

2) If we get another name and ticker change quickly. This would indicate that they are trying to get lost, in order to, attract new "investors." Look at a company that used to be called Eagle Worldwide Marketing for a classic application of this strategy.

I am also concerned that there are no June numbers yet and this move is another excuse for not obtaining funding. Tom just bought himself another couple of months. Only time will tell and no one really knows- do they?

If these scenarios are avoided and we get funding from this move than us longs still have a chance to prosper. I am still hopeful and remain optimistic but would strongly recommend booking some profits from the coming bounce just in case it turns out to be a dead cat bounce.

May you glass always be full.....

July CEO Letter

This has been added to the CEO letters archive from May:

Letter from the CEO - July 20, 2005

Dear Valued Shareholder,

I am writing this letter to inform you that Primeholdings has once again reached a crossroad which requires our utmost consideration. Over the past fifteen months we achieved revenues in excess of $2.75 million despite being grossly undercapitalized. It’s not hard to imagine what could have been accomplished had the company been properly funded. I never thought we would ever have a problem with "growth funding" through the Pinksheets as long as we had revenues. On a few occasions our annualized revenues were 7-8X that of our market cap which is remarkable. We find ourselves in a situation whereby it is impossible to adequately fund the company solely through the Pinksheets. Even with steady revenue announcements, consistent growth for a year and half, and the proven track record of Target's management, the stock failed to reflect our true value. The Pinksheets are clearly not designed to facilitate growth for companies with our revenue/business model.

We are now contemplating other avenues by which to achieve our objectives. Over the last few months we have been in the process of obtaining funding for debt restructuring through unique means via the banking community. Once completed, this will facilitate the restructuring of our debt load thereby alleviating some of the current financial pressure. Because of the inability to properly fund the company through the Pinksheets, we were forced to cut back on our aggressive revenue drive. This was mainly due to the imbalance between the credit terms extended to us by our foreign partners/providers as compared to those we are required to extend our upper tier customers. The cumulative monthly cash flow deficit this created, together with the modest losses associated with a start-up, makes the situation unmanageable.

The immediate goal is to set up funding arrangements that will facilitate growth to profitability without the dependence on the Pinksheet market. Recently, we have been presented with two very strong and favorable deal sheets from very reputable groups in the investment banking community. One of the firms manages over $400 million in equity investment capital and represents approximately 10% of the “PIPE” (Private Investment in Public Entity) market. The one stipulation required to bring this to fruition is that we must be a full-reporting company. Our immediate reaction to this requirement was that to get the company to a full-reporting status in a short time is a very tall order. After further consideration and subsequent discussions we found that this in fact could be accomplished via an existing full-reporting OTC-Bulletin Board company that has been made available to us by an old friend and valuable ally of Prime.

The process would begin with the acquisition of the full-reporting company. The new entity would then acquire the assets of Target Communications. As payment for those assets, stock in the new entity would then be issued to all shareholders holding common stock in Prime. Implementing this process in such an expeditious manner will allow the investment firms to act much quicker in supporting our capital funding needs. More importantly, this arrangement has no financial limits unlike those imposed in the Pinksheets via 504 exemptions. On a side note, due to our economic prudence, Prime can still raise in excess of $700,000 through its 504 exemption in the current year.

Of special interest to the Primeholdings shareholders is that collectively, they will have majority interest in the new entity, which will then have ownership in Target’s assets. Another exciting aspect of this proposed scenario is that the shareholders of Prime maintain their equity stake in Primeholdings and gain an interest in the new entity positioned to be properly funded because of its public reporting status. Mergers and acquisitions can become a reality and Prime gains credibility leaving the Pinksheets for the OTC Bulletin Board. The opportunities are endless provided we can get this done quickly. Clearly this move puts the Prime shareholders in a much better position to recoup their value while placing Target in much better position to attain its lofty revenue goals.

Henry Ford once said:

Obstacles are those frightful things you see when you take your eyes off your goal.

I have not lost my focus nor desire to make our company prosper. Despite the obstacles we’ve faced in the way of shorters, bashers, and various other negative forces attempting to impact our good intentions, we are determined to succeed. My eyes remain steady on our goal! Thank you to all that have supported me and the rest of our management team and know that we will continue to work diligently to bring value to you all.

Kindest regards,

Tom Aliprandi, CEO

Make Some Money

The time is here for a bounce.

Now would be a good time to buy 1 or 2 million shares to sell when the price doubles or triples. Make no mistake that the bounce is coming (IMHO) but do not get greedy. Due to the current state of affairs this bounce will be less significant than other recent bounces.

I would not add to my "core" position until the company makes more progress on righting the ship.

There are those to whom this would be blasphemy. Who think that shares of PMHJ are to be accumulated and held dear as a sacred tome. Of course, these same individuals have admitted to profit taking in the past and blast the "realists" one day to only downgrade their own ratings of PMHJ a short time later.

Go forth and make some money to decrease the pain of recent days.

Latest Utah Filing

https://secure.utah.gov/bes/action/index

(search Prime Holdings- Thank you Roth!)

Times are Tough....

Things could not be much bleaker in PrimeLand.

Our pps is depressed.

We have no news.

RB has been reduced to nothing more than bickering.

Dilution has returned.

Funding appears farther away than ever.

Friends have turned into enemies.

The bashers grow bolder with each passing day.

One thing we should have all learned by now is than Prime has an uncanny ability to bounce back.

Don't write off our little gem yet...

June Numbers

Hopefully, the June numbers will be released soon.

This is the longest lag we have had for the posting of figures recently.

Maybe, it is good news and will come with a PR updating our funding situation.
Other than bickering there is no other news....

Dark Days (purely editorial so be forewarned)

Times are tough in PrimeLand.

Only a fool would not be concerned by recent developments.

We had a hacker attack on Busboy's website (see screenshot below). Most likely meaningless.

Our Nevada filing has been updated. Good news but it raised a concern. Most people's recollection is that after the r/s last year the a/s was set at 1.3 to 1.6 B shares. The new a/s in the updated filing is 2.075 B shares. Why the up-tick? Recent trading volume suggests that the o/s has risen sharply. But it in no way supports anything like a billion shares. Since the a/s was already 1.6 B- why raise it?

The funding situation continues to be a blackhole. No updates, no information and nothing period.

All of this continues a disturbing trend of "blowing" off investors, in regards to, providing information. Most of us would be happy with simple updates. The share price has collapsed and I (IMHO) place the responsibility with the company and CEO for not showing any respect or decency toward the shareholders in terms of providing information.


The saga continues....