Tuesday, November 22, 2005

Updated Links

Prime's site: http://primeholdings.com/

Target's Site: http://www.targetusa.net/

Busboy's Site: http://www.busboytech.com/index.shtml

An oil DD link to look at: http://barnettshaleholdings.com/main/index.htm

And the oil lease (Hartoin-Walker Lease) exists: http://www.rrc.state.tx.us/divisions/og/uic/water/wat09-w3.htm

DD for MCMD (rumored to be getting Target): http://finance.yahoo.com/q?s=MCMD.PK

Jupiter: http://www.jupiterglobal.net/

Raging Bull PMHJ Board: http://www.ragingbull.lycos.com/mboard/boards.cgi?board=PMHJ

Alexander Lindale: http://www.myotcbb.net/html/clients.html

Allstock PMHJ Board: http://www.allstocks.com/stockmessageboard/cgi-bin/ultimatebb.cgi?ubb=get_topic;f=12;t=000398;p=0

Site Where PMHJ's CEO can be asked questions (answer rate is rather low): http://www.stockinformationsystems.com/c/PMHJ/index.html

A possible source of financing: http://www.ashlincapital.com/clients.htm

Another possible source of financing: http://hiprotechinternationalinc.com/about.html

SEC filings for Prime: http://www.sec.gov/cgi-bin/browse-edgar?company=primeholdings&CIK=&filenum=&State=&SIC=&owner=include&action=getcompany

Charts: http://stockcharts.com/gallery/?pmhj

Reference site on the subject of N.S.S: http://www.investigatethesec.com/

The now infamous (if dated) Mercede's photo: http://www.altacita.com/my_dreams_car.htm

Saturday, November 19, 2005

Our New Business

Whiskey & Gunpowder
November 18, 2005
by Byron W. King
Titusville, PA

Fire in the hole!

"FIRE IN THE HOLE!" yelled our host, his hands cupped to his mouth.

We were deep in the midst of uninhabited woodlands, several miles from the nearest structure, so the shout was meant for no one in particular. But it is as much tradition as it is the law of Pennsylvania to give a clear and distinct audible warning of what was about to occur. And what was about to occur was also part of an old oil field tradition, dating back to the earliest days of the industry, in the 1860s, called "shooting a well."

Our host turned around and faced the other direction, again yelling, "Fire in the hole!" His voice trailed off into the endless vista of oak and maple and black cherry tree trunks, mostly barren of leaves by the middle of this chilly, but very sunny and bright November day. Then, our host smiled (we were all smiling) and stepped over to the blasting machine that was sitting on some 6-by-6-inch pieces of lumber at the edge of a corrugated steel lean-to.

"Everybody get ready to move under cover in case any fly-rock comes out," said the blaster, Richard Tallini, a licensed explosives expert who has been setting off high-energy charges since 1967. That is, if any rock or other debris came shooting up and out of that hole, we were all supposed to dive for cover under the corrugated steel structure. I've dropped a few 500-pound bombs in my life, back in my days flying jet bombers in the U.S. Navy. So our host did not have to tell me twice about respecting the outcome of a major explosion.

In the second-to-last step of a long sequence of events, all performed with the utmost attention to detail and safety, our host pushed the yellow button that closed the electric priming circuit. We could hear the increasing sound of the capacitors -- not unlike the whine of a distant jet engine -- as they were charging.

By virtue of winning a coin toss with his 9-year-old sister, a young fellow named Max King, all of 6 years old, had the honor of pushing the red detonator button. In less than the blink of an eye, the capacitors discharged and sent a pulse of current through a yellow wire. The charge moved at the speed of electricity in copper, across 100 feet of Venango County hillside, and down more than 900 feet of wire to an 8-foot-long tube at the bottom of a hole.

Inside that tube, at the bottom of the hole, was about 75 pounds of high-energy propellant (not explosive, mind you), a rubbery compound not unlike the material that powers the solid rocket boosters on the U.S. space shuttle. Rocket fuel? In an oil well? Yes. It beats the heck out of nitroglycerin, the stuff they used to use for this down-hole purpose.

You can hit this rocket fuel with a sledgehammer and it will not blow up. But turn a 6-year-old loose on it, and watch out. Max's well-timed electrical pulse moved down into the earth and triggered a priming charge at the top of the tube, which caused an explosion that accelerated down a detonation pathway inside the package and thus ignited the propellant. Kaboom!

Had ignition occurred at the surface of the Earth, the resultant release of energy would have knocked down just about everything for 100 yards and put out enough heat to set the woods on fire for a good long distance. A surface explosion like that to which we were party would have dug a 15-foot crater, raised a mushroom cloud that would have been visible two counties over, and been heard by listeners 30 miles away. But this particular release of energy was contained deep within the confines of an 8-inch hole, an oil well drilled many years ago into the Devonian age sands of northwest Pennsylvania.

We heard something like a low rumble come from the well. But there was no fly-rock. Nobody had to dive for the deck. Within seconds, the air above the well was disturbed by the heat energy that escaped from the top of the hole, distorting the light that passed through. Then there were some wisps of smoke that exited the hole, and as we walked close to the well, we could smell the odor of natural gas and burnt carbon and char. We had this feeling that we had somehow changed the world, but we had yet to discover by how much, or perhaps by how little.

We were close to the action, but we were also faraway. It was as if we were standing on the observation deck of the Empire State Building and the explosion had occurred at street level. It was a long way to begin with, at least vertically. And it all happened in the very tight, narrow confines of an oil well.

If you are not familiar with the processes of things subterranean, it would seem that strange events must occur down at the bottom of a hole in the ground. Even if you are familiar with the technical geological processes, it is truly the case that strange and mysterious things happen down there all the time.

Miners and drillers and blasters even have their own protective patron saint, the good and beatific St. Barbara, to ward off the odd and sometimes evil things that occur at depth. After all, when the world literally comes crashing down upon your head, what must be your last thoughts? There are no atheists in foxholes, they say. Nor at the bottom of dark pits and shafts and wells, let me add. But that is another story for another time.

The first several hundred feet of this particular oil well, from the surface to down below the glacial till and weathered zone of the bedrock, are lined with steel casing. This steel casing serves to stabilize the hole and to protect the ground water from contamination by salt and brine waters from the depths, or by leaking oil that forms part and parcel of those down-hole fluids.

The remainder of the well, down to total depth, is what is called "open hole," penetrating through just plain, solid, 380-million-year-old Devonian rock of the continental crust that forms the western foreland of the Appalachian Mountains. This hole in the ground penetrates numerous thin, oil-bearing sands on the way down. And it comes to an end after making its way well into the famous "Venango second sand" of this historic oil-producing region.

The 8-foot-long charge, lowered on a wire to a precise depth near the bottom of the hole, was underneath about 100 feet of water column. The water came into the hole courtesy of the natural seepage from the sides of the well, into the open bore beneath the steel casing. This water column also served to contain much of the energy from the propellant at the bottom of the well bore, instead of allowing the energy to explode upward, like what happens when a bullet is fired from a long gun barrel. Ideally, you want to keep your energy down in the hole, where it can do you some good.

The idea is to channel that rocket fuel energy, via hydraulic shock, for as long as possible (milliseconds, really, but that is the physics of shock waves) against as much as possible of the oil-bearing sandstone. At depth in the well, the hydraulic shock wave travels at ultra-high speed (much over 10,000 feet per second) through the mixture of oil and water that permeates the rock, and also channels through the fractures in the rock. Most of the transmitted energy is mechanical, in the form of the shock wave front. The wave front pushes through the fractures and opens and expands new fractures.

Some of the energy that you release is also transformed by heating the down-hole fluids, leading to vapor expansion opening up the fracture systems via the effects of superheated steam. The bottom line is that you want to maximize the one-time pulse of the energy release and place that pulse against the maximum amount of surface area. Get it? There is, of course, a method to this madness.

Many years ago, when this particular oil well was first drilled by the Quaker State Oil Co., the geologists and engineers took the time and went to the expense of fracturing the oil-bearing sands with a high-pressure water charge. It is called, in the industry, "hydro-frac'ing." That is shorthand for "hydrological fracturing."

To make a long story short, hydro-frac'ing involves getting a couple of big pumper trucks out on the well site and pressurizing water down your hole in the ground. The pressurized water works its way into the natural zones of weakness that are present in every sedimentary rock, particularly those of the second sand in these Devonian formations. In the case of this particular well, the idea was to fracture the oil-bearing sands with high water pressure early in the life of the well, and thus increase the surface area of sand that could drain oil into the well bore. It was and is a well-known technique to increase the short-term recovery of the Pennsylvania-grade crude oil contained within.

Yes, indeed, it worked. This particular oil well was a good producer for Quaker State for many years. The oil was consistently able to seep out of the exposed rock surfaces that were fractured at depth. The oil then migrated, both by gravity and through the hydraulic assistance of natural water flow, along the fractures (mostly microscopic cracks, really) and into the well bore. Once in the well bore, the oil could be pumped to the surface and collected via a system of gathering pipelines.

But eventually, the oil production from this particular well, and from its neighboring wells, declined to a point where Quaker State sold everything off. Quaker State could not be bothered with wells that were producing only a few barrels of oil per day, let alone a few barrels of oil per month. So other operators purchased the lease rights to the oil field containing this well, and all of the nearby wells.

This well, the one we were "shooting," and many others similar to it, passed to operators who were and are willing to invest the time and labor (and it takes a lot of labor, I assure you) to coax whatever oil is left into the well bores. The well shot that we witnessed was an attempt to put new energy down and through the old fracture systems, and thereby enhance the oil production.

Let us digress for a moment. These low-volume well operators are, in effect, "stripping" the remaining oil from these holes in the ground. And these oil wells are called, appropriately enough, "strippers." It works kind of the same way for gas wells, too.

According to statistics collected by the U.S. Department of Energy, the United States has over 393,000 oil and over 260,000 natural gas stripper wells in operation. The DOE definition applies to oil wells delivering no more than 10 barrels per day, and gas wells delivering no more than 60,000 cubic feet of gas per day. These stripper wells deliver almost 15% of America's domestic oil production and almost 10% of U.S. domestic natural gas production.

Stripper wells are typically operated by small, independent companies or by individuals. Often as not, these are family businesses. Small and close is the nature of this particular segment of the oil and gas industry, because it deals with oil and gas fields that are long past their production peaks. The easy oil and gas, and the easy money, have long been pulled out of the ground. Big outfits, with lots of overhead, and especially with public shareholders to satisfy, cannot afford to be in this segment of the business. What it all means is that now comes the long, hard, and labor-intensive effort to nurse these wells through their old age.

But without the aggregate production of these stripper wells, the United States would have to import an additional 900,000 barrels of oil a day, an increase of almost 10% over current imports. And without natural gas from U.S. stripper wells, the United States would be required to import an additional 1.5 trillion cubic feet of natural gas per day, an increase of about 38%. Thus, cumulatively, oil and gas stripping is a keystone of U.S. energy supply.

There has been quite a bit of progress in recent years on life extension technologies to reduce the need to plug and abandon stripper wells. In 2002, for example, more than 3,800 gas wells and 14,000 oil wells were plugged and abandoned nationwide, even though most of the wells were still producing hydrocarbon fluids, albeit at very low rates. The long-term implication is that once stripper wells are plugged and abandoned, the costs to re-enter the formerly producing oil or gas strata (typically by drilling a new well) are prohibitive. The energy resources may as well be lost forever.

Both government and private industry are continuously working on ways to extend the lives of these stripper wells. There is a group called the Stripper Well Consortium, an industry-directed effort whose research, development, and demonstration efforts are co-funded by the DOE, through the National Energy Technology Laboratory's Strategic Center for Natural Gas and Oil. This group has come up with some very good, innovative ideas. But not all progress comes from the government-funded gods of Mount Olympus.

Sometimes, progress comes from the likes of a small company with an old facility near Titusville, Pa. Which gets us back to our weekend well shot. Our host was one of the owners of the Otto Cupler Torpedo Co., a privately held firm that traces its history back to the very beginnings of the well shooting industry in the 1860s. (Originally, Otto Cupler was called the Roberts Petroleum Torpedo Co., named after Union Army Col. E.A. Roberts who first patented the "well shooting" concept. This is the basis for another Whiskey article for another time, dear readers.)

What we were witnessing the other day in the woods south of Titusville was a new kind of well shot that is a vast improvement over the old and dangerous manner of stimulating a well by exploding liquid nitroglycerin. It also is an improvement over using other, but safer, forms of high explosives. Nitroglycerin and other high explosives tend to shatter the rock, and in many instances cause the well to plug up with large amounts of debris, instead of increasing production.

But by utilizing modified rocket propellant, the down-hole energy and velocity characteristics are quite different from those of high explosives. That is, there are fewer tendencies to shatter the rock formation, and an increased likelihood of expanding an existing fracture system, thus increasing the surface area from which the oil can drain from the oil-bearing strata and into the well.

Did the shot that we witnessed really work? It takes awhile to know for sure, because the operator has to clean out the explosive debris from the well (there is always some debris), reinstall the down-hole tubing and pumping equipment, and then track production over a period of time. But past well shots of this type have increased oil production by as much as a factor of 10, at least for a period of weeks and months. The business rationale for "shooting a well" is that a properly executed shot will pay for itself in the short term, and coax some oil out of the ground that otherwise never would have seen the light of day.

The oil business is a mixture of technology and tradition. What makes the oil business work is a certain kind of person who is willing to take immense risk on something as mundane as a hole in the ground. What many people don't seem to understand about the availability of oil is the truly unique period of energy history in which we live. That is, relatively cheap and accessible, but depleting, volumes of liquid hydrocarbons have given mankind the powers once reserved for the gods of myth, if not of miracle.

As the world reaches and passes the point of Peak Oil, and as more and more of the world's oil wells and oil fields go into irreversible decline, the stripper segment of the industry will play a more and more important role. There will, of course, be new techniques developed to locate and recover those last precious barrels of oil from the rocks underground. Some of those techniques will probably be so innovative and unusual that their roots will date back to the 1860s and the founding of the petroleum industry. But then again, didn't some famous book once note that there is nothing new under the sun?

So as I bid you farewell, allow me just to remind you of something important. When you are out in the woods and you hear someone holler, "Fire in the hole!" you had better duck.

Until we meet again,
Byron W. King

P.S. Many thanks to Richard Tallini and the Otto Cupler Torpedo Co. for a great day in the woods of northwest Pennsylvania.

Friday, November 18, 2005

Shareholder Letter

Dear Fellow Shareholder,

Many of you have inquired about the direction of our company. Our past press releases seem to have created more questions than answers, so I will do my best to personally address each and every concern.

First and foremost, I would like to convey my most sincere appreciation to the business associates, brokers, and fellow corporate officers for their continued support and advice as we share this journey.

To begin, it simply isn't necessary to look much beyond our name to understand our corporate goals. PrimeHoldings is just that, a holding company. We strive to find attractive, undercapitalized companies that present an opportunity for us to acquire a majority stake, and hopefully provide a strong return to our shareholders. The asset of a holding company is the equity it holds in each of its investments. Some require more than just capital. Each scenario is different.

Having said that, I see our goal as identifying and acquiring those companies offering the greatest promise. Our job is to make certain that our portfolio companies are adequately capitalized to execute their business plan, and that we make every possible effort to provide the intangibles necessary to drive revenues and build the business. Whether that consists of consulting, management, legal, accounting, auditing, or just acting as a 'sounding board', we have the 'go-to' ability to deal with most issues.

Financing is clearly the most crucial need for incubated companies, and historically, we've succeeded in providing that to a few of our subsidiaries. When we traded on the OTCBB, we had the ability to bring institutional support to our portfolio companies. Since the PinkSheets have continued to be a haven for predatory market makers and naked shorting, the appetite for any institutional players to participate has drastically diminished.

As many of you are aware, the number of States that have exemptions from registration under Rule 504 are shrinking day by day. In fact, we currently have almost $800,000.00 available to us under the exemption, largely due to the fact that we haven't 'gone to the well' much over the past year. The problem is, the value of capital simply hasn't offset the dilution we all would share. We believe that a substantial short position exists in our market. We further believe that the plan we have in place, and are in the process of executing, will hopefully mitigate any further predatory tactics within our market.

By using our asset companies as value for acquisition into an existing entity, we've negotiated the acquisition of a corporation that will trade on an 'unsolicited' basis. Further, we've included all of the legal and accounting work required to take it from an unsolicited company, to a fully reporting OTCBB company, and then quickly (we hope) to the Archipelago exchange. The dividend our existing shareholders will receive in the new company that will hold Target, and the subsequent registration statement and anticipated listing, could, in a perfect world, leave the short sellers with a really, really big problem.

This brings us to the most recent announcement regarding our acquisition of operating oil leases. With our negotiated relationship with Barnett Shale Holdings, we can acquire substantial assets in gas and oil. Initially, we won't need additional employees, we don't need to develop technology, and there is no need for additional infrastructure. We simply invest in OPERATING oil leases, and sell oil. The more oil extracted through new technologies, including 3D imaging, and directional boring, the more profit we share. The greater the profitability, theoretically, the higher the share price. The higher the Prime shares go, with limited dilution, will allow us to continue acquiring better leases, with increased revenues, and so on, and so on.

I guess what I want to make abundantly clear is that our goal is this; to have Target be in a company as a 'stand-alone' holding, trading under a different stock symbol on a different exchange; WE (all of us) will have shares in the NEW company by way of a dividend paid to all shareholders of record of PrimeHoldings. Prime, on the other hand, will continue to trade, will work to bolster its asset base, and hopefully continue to grow to a point that we qualify to move to a more stable exchange. I believe that the current share price is artificially low as a direct result of market maker activity, and I hope to see a return to the point that we're all proud to have stayed the course.

We have made many sacrifices as officers and directors of this company, and we more than just share the discomfort many of you feel as our share price struggles. After many hundreds of hours of work, and research, we believe that the path we have chosen will reap the greatest rewards for all of us.

Again, I thank you for your continued faith and support as I do my best to run your company.

Sincerely,

Thomas Aliprandi
CEO

Friday, November 11, 2005

Interesting Read

Pink Sheets scams may give investors nightmares
By Matt Krantz, USA TODAY

Old scams never die. They just get new names and snare fresh victims.
That vicious cycle is powering a renaissance in pump-and-dump schemes on the Pink Sheets, the Wild West of Wall Street that is a breeding ground for penny-stock scams.

Pink Sheets used to literally be pink sheets of paper that brokers used to trade stocks that didn't meet the listing requirements of an exchange, such as the New York Stock Exchange. Now, it's the label for a computerized network that allows investors and brokers to buy and sell stocks without getting near an actual stock exchange.

The scant regulatory oversight that allowed penny-stock scams to rise in the first place is enabling their comeback. And they're surfacing with a vengeance because of technology that makes it easy to reach millions of investors via e-mail and instant messages on cellphones.

Five years of ho-hum returns from legitimate stocks such as Microsoft and General Electric are adding to the conducive atmosphere. People who want high-octane investments are more receptive to these get-rich-quick schemes pitching trendy investments ranging from fitness centers to alternative energy plays such as wind farms and biodiesel.

Last year, the number of companies listed on the Pink Sheets hit a record 4,570, and trading volume hit 820 billion shares — more than quadruple the level the year before, according to PinkSheets.com. This year is on track for another record, with 4,781 companies listed and a dollar volume of $47.4 billion through Nov. 9, on pace to beat last year's $50.7 billion volume.

Not all Pink Sheets-listed stocks are scams. But amid that flood of activity on the Pink Sheets is an increasing number of scamsters trying to lure fresh prey with promising pitches, say securities lawyers and watchdogs. "I've been seeing more of them," says Hartley Bernstein, of StockPatrol.com. "I get a dozen a day."

A typical pump-and-dump scheme involves somebody making falsely optimistic claims (the pump) via a press release or an e-mail about a shell company whose shares trade for a few cents. Unsuspecting investors buy the "penny stock," causing its price to double, triple or more. Then, scamsters sell shares (the dump) at a profit, leaving other investors holding what turns out to be nearly worthless stock.

Regulators shake their heads at the lengths some go to snare victims. "Some of these bad guys rig the Internet. You can rig the Internet to lure investors into a false sense of security," says Cameron Funkhouser, NASD's senior vice president of market regulation. For instance, some create a fake message board where it appears dozens of investors are gushing about a company's hot prospects.

Technological advances might have made the scams more effective, but many wouldn't work if it weren't for the Pink Sheets. Unlike stock exchanges such as the NYSE, the Pink Sheets system is an informal computerized network that allows brokers to trade stocks and compare quotes. When an investor wants to buy a stock on the Pink Sheets, they contact a broker, who can use a computer to see what the stock is trading for, then contact another broker who facilitates buying and selling in that stock.

Stocks on the Pink Sheets system fall between the cracks of regulation. The NASD regulates brokers, not the stocks they trade. The Securities and Exchange Commission, with few exceptions, regulates only companies with more than $10 million in assets and more than 500 shareholders. Virtually no stocks traded on the Pink Sheets clear that bar.

"As a practical matter, smaller companies tend to fall below the SEC's radar and state regulators'," says John Coffee, securities law professor at Columbia University. "They're too small."

That means a lot of latitude for anyone who wants to abuse the system. Only when a penny-stock scam runs blatantly afoul of the law or violates anti-fraud provisions can the SEC get involved.

The SEC has not released the number of penny-stock scams it has found on the Pink Sheets this year, which makes the boom hard to quantify. But a few of the SEC's recent enforcements show the range of tactics used to lure investors:

Questionable correspondences.

In July, the SEC charged Joshua Yafa, a stock promoter in Florida, with fabricating a fax that appeared to be a private letter from a broker urging a client to buy shares of Pink Sheets-listed stock AVL Global because it was poised to triple in value. The fax was transmitted to thousands in late 2004. The shares jumped 25% on heavy volume after the fax went out, and the SEC's lawsuit alleges that gave Yafa a chance to sell at a $300,000 profit. Yafa's attorney did not return calls for comment.

At the same time, the SEC charged Michael O'Brien Pickens, son of oil tycoon T. Boone Pickens, with using a version of Yafa's tactic to pitch three stocks, two of which traded on the Pink Sheets. The SEC claims the younger Pickens also pocketed $300,000 on the alleged scam. He might never have come to regulators' attention if the fax service he used hadn't unwittingly sent it to one of the SEC's California offices. Pickens' attorney did not return calls for comment.

Multimedia assaults.

In February, the SEC charged Donald Oehmke, Bryan Kos and five partners with putting out false press releases, faxes, e-mails, voice mails, websites and videos to promote two Pink Sheets-listed penny stocks. One claimed to be a Latin American staffing company and the other, a fitness center operator. The SEC said the press releases were false and that the president of the Latin American recruiting firm was in on the scam. The SEC also said the second company didn't own a single fitness center.

Even so, buzz created around the stocks drove them up and allowed the men to profit by more than $27 million, the SEC alleges. Oehmke's attorney declined to comment. Kos' attorney says his client was fooled by the company's management and believed the statements he made about the stock were correct.

Bogus "research reports."

Scamsters often enlist the help of firms that create bogus research reports designed to look like they're from legitimate brokerages. Other times, the fraudsters make the "reports" themselves and disguise that key fact from investors.

That's what the SEC in September charged two people with doing when they promoted what was described as a website construction company. The SEC accused George Bogle and Peter Emmanuel with putting out a report that appeared to be from an independent stock analyst and that said the stock was "our most aggressive stock buy recommendation." But it was based on false information, the SEC says. Nonetheless, the stock jumped 120%, and the two profited nearly $500,000 by selling the shares amid the good buzz, the SEC says.

Emmanuel thought he was just repeating reliable already public information on the stock, his attorney says. Bogle's attorney didn't return calls.

Anyone who isn't confident promoting a Pink Sheets-listed stock can get help. Take Jonathan Lebed, who was fined $285,000 in 2000 by the SEC for buying stocks mainly listed on the NASD's "Bulletin Board" market, spreading false messages to promote the stocks, then dumping them. Lebed paid the fine without admitting or denying guilt. Now, he concentrates his efforts on promoting Pink Sheets-listed stocks. He discloses on his website that he gets paid by companies, often $25,000 a month, for "investor relations" contracts to promote certain Pink Sheets-listed stocks. He often sends e-mails touting events at the company. Several e-mails sent to Lebed were not answered, and no phone number could be found for him or his offices.

Reverse mergers.

It's easy for anyone to "take their company public," thanks to the fact that there are hundreds of shell companies trading on the Pink Sheets that exist on paper but have no assets.

Consider Wind Farming, created when William Telander bought a Pink Sheets-listed company called Applied Research. Applied had no assets, just a Pink Sheets listing, according to an SEC complaint filed this year. After buying Applied, Telander changed the name to Wind Farming, which allowed him to avoid regulatory scrutiny because he took over another company rather than issuing new stock. Starting as far back as summer 2004, Telander began issuing trumped-up and "false" press releases extolling Applied's success, the SEC complaint says, including fabricated business contracts. Trading volume soared from basically nothing to more than a million shares a day, the SEC says, allowing Telander and a group of partners to make hundreds of thousands selling shares. The attorney representing Wind Farming declined to comment.

Problems don't occur only on the Pink Sheets. Enron traded on the NYSE. WorldCom was on the Nasdaq. But companies on the Pink Sheets get greater freedom because there are no listing requirements and there's no dedicated regulator. Companies don't have to meet any standards to be on the Pink Sheets and don't have to put out financial statements. Even Sarbanes-Oxley rules designed to clamp down on corporate games don't apply to Pink Sheets-listed companies.

The SEC usually gets involved only if scamsters get so greedy that they issue additional shares rather than just pumping and dumping existing shares, says Gidon Caine, securities lawyer at Dechert LLP.

Meanwhile, Pink Sheets stocks have the appearance of being like any other stock. Even mainstream websites, such as USATODAY.com and Yahoo Finance, provide quotes on Pink Sheets stocks that give them the appearance of being regular exchange-traded shares.

Some are hopeful that Pink Sheets scams can be curbed. The SEC has been moving to clean up the Pink Sheets where it can, especially by targeting dormant listings of shell companies. For instance, in July it suspended trading in three Pink Sheets-listed stocks, Asia4Sale.com, Vision Group and Idoleyez, saying they were not providing accurate financial data.

The SEC also tightened rules by forcing shell companies to release regulatory filings after being taken over.

These moves will help clamp down on these companies. But the spate of recent enforcement actions, for one, should serve as a reminder to investors to do their homework. "If you can't get a full picture of what a company is doing, you should stay away from it," says Cromwell Coulson, CEO of PinkSheets.com.

Rumors

From I-Hub:

Posted by: fugeguy
In reply to: None Date:11/11/2005 1:43:59 PM
Post #of 164

Rumor mill going full tilt.

From the RB board:

"By: anydaynow_1ar
11 Nov 2005, 01:29 PM EST
Msg. 32989 of 32990
(This msg. is a reply to 32988 by rothpennyking1.)
Jump to msg. #
WE HAVE SOME "VERY BIG ANNOUNCEMENTS"
SOON-----AND THEN YOU'LL WISH YOU WERE IN BIG TIME
WATCH AND LEARN "

Who knows- but we are about due for a break.

Friday, November 04, 2005

Thoughts for the Week

Posted by: fugeguy
In reply to: None

Date:11/4/2005 10:40:07 AMPost #of 152

I think we are now stuck for awhile.

The market will not move us based on the oil news.

The NewTarget does not seem to be launching anytime soon.

Patience on a biblical scale will be needed for this stock.

Hopefully, it will be rewarded.

-- May your glass always be full--

Tuesday, November 01, 2005

DD for Barnett Shale/ Hartoin-Walker Lease

A DD link to look at:

http://barnettshaleholdings.com/main/index.htm

And the lease exists:

http://www.rrc.state.tx.us/divisions/og/uic/water/wat09-w3.htm

I do not know if it relates directly...but these were mentioned in the last PR.

More DD on MCMD

By: gt500_oh
01 Nov 2005, 08:58 AM EST
Msg. 32838 of 32845
Jump to msg. #

By way of DD for MCMD:

MCMD -- MicroSmart Devices, Inc.
Com ($0.001)

Address:
3046 East Brighton Place
Salt Lake City, UT 84121
USA

Phone: 801-556-5228
Fax: 801-904-1254

Business Description: Not Available

State of Incorporation: NV
Year of Incorporation 1998

Officers:
Mark Meriwether, Pres. & Sec't.

Fiscal Year End: December 31

Outstanding Shares: 414,304 as of 2004-09-30

Estimated Market Cap: Not Available
Authorized Shares: 50,000,000 as of 2004-11-15

Current Capital Change:
shs decreased by 1 for 35 split
Ex-Date:
Record Date:
Pay Date: 2004-07-06

Dividends:

Company Notes:
Formerly=Design By Robin Inc. until 5-01
Formerly=Neosphere Technologies Inc. until 7-04
Note=9-30-04 company is in the development stage

Transfer Agent:
Colonial Stock Transfer Co., Inc., Salt Lake City, UT 84111

The information provided here has been obtained from publicly available sources as well as directly from issuers in some cases

(Voluntary Disclosure: Position- Long)