In OTCBB Market, P&D promotions are more complex that outlined above. However, costs and resulting net profit are as I've outlined above. So let's assume that you can make about $600,000 during three small P&Ds over about three years with your S&M deal. To make more money, you'll want to develop "a stable" of S&M companies. Over a seven year period, let's assume you can do three P&Ds on five companies. You'll make $3,000,000.

For years , I've argued that money is in doing one real OTCBB company. You start out with a company making money, if not a profit. You either create company or buy it. If you are cash-strapped, you buy a turnaround. You take your cash-producing company public via spinoff. You forget that you have four million insider shares. You move your share price to $20/share. You use your strong share price to do a Private Placement financing. You use your strong share price to buy cash-producing assets. Over a 5-7 year period, you create a hundred-million-dollar company.

From beginning, you've made your acquisitions to meet needs of a major power in your industry. You've focused on overseas asset development because it costs less and is often more attractive to industry giant corporate buyers.

With a strong balance sheet and a $20 share price, you open discussions to do a friendly merger with that Industry Giant. As a public company, you let public investors know of your pending friendly merger at Market Capitalization (share price times issued shares). Your share price climbs to $40/share in anticipation of your pending merger.

You sell your 4 million shares at $40/share in friendly merger. You make $160 million. You get your "Golden Parachute" as an officer or director of company. It's worth another $5 million to you. You net $165 million in about 7 years.

What makes more sense? You can make $3 million in 7 years doing Pumps & Dumps. You risk regulatory problems doing it. You'll lose your friends and business associates because you'll have defrauded them with your S&M deals. Some of your P&Ds will fail and cost you money. Or, you can create one real company. You'll make $165 million. You won't have to hide from SEC. Your friends and business associates will thank you for putting them into your stock.

It's your choice. If you chose real company strategy, I want to help you. If you prefer P&D strategy, please don't contact me.

To contact author: Visit Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visit Global Village Investment Club Website: [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

It took until Fall of 1999, for NASD to create an increase in demand for trading shells. As I reported in an early issue, OTCBB shells doubled in price in about three months.

The SEC is ending sale of Trading Shells. How will this affect price of spinoffs and IPOs, by this Summer? It depends upon Bull or Bear winning in Market in next few weeks.

The end of trading shell sales makes spinoffs only low cost alternative to doing an IPO. If a Bull Market survives current Market correction, demand for spinoffs will increase and cost of doing a spinoff must go up. If Bear wins Market battle in next few weeks, demand for going public will collapse. You can't raise risk capital in a Recession or Depression. Spinoff costs should remain at current US$250,000 level. This is payments over eight months of US$100,000 and balance paid from proceeds of Offshore Private Placement.

Financial Professionals are caught between a rock and a hard place. If Bear wins, they can't raise risk capital. If Bull wins, Cost of Money will go up in next few months. If Bull looks like winner, my advice is start spinoff process before your Costs of Money double.

To contact author: Visit Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visit Global Village Investment Club Website: [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]