[PLNI]: A History of False and Misleading Statements by Two Stock Promoters

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The purpose of this section is to chronicle the false and misleading public statements made by these two stock promoters on the message boards: http://snipurl.com/kyyo and http://snipurl.com/kwrs. The section will be updated periodically.


1. By: rrm_bn4u 14 Nov 2005, 09:00 PM EST

http://ragingbull.lycos.com/mboard/boards.cgi?board=PLNI&read=21393

False Statement:

"The Plasticon acquisition of ProMold was completed on the 9th as scheduled. All funding for the acquistion was private and did not involve any dilution of stock."

the_worm06 Comments: According to a press release issued by PLNI, the ProMold acquistion was still not completed as of the date of the press release, Dec. 9, 2005, almost a full month after rrm_bn4u's false statement: http://theworm06.blogspot.com/2005/12/plni-false-misleading-statements-on.html. The false statement above was derived by the poster based on his conversations with Bill Howe, the investor relations consultant to PLNI. In the following posted message, rrm_bcnu states that "your affirmations are the same as saying it yourself": http://www.siliconinvestor.com/readmsg.aspx?msgid=22002348





2. By: rrm_bn4u 13 Oct 2005, 09:41 AM EDT

http://ragingbull.lycos.com/mboard/boards.cgi?board=PLNI&read=16094

False Statement:

"Anyone who sells off into this run will regret those sales for months."

the_worm06 Comments: This statement was made on October 13, 2005. The PLNI stock price closed at $0.0101 on that date. More than two months later, on December 21, 2005, the PLNI stock price closed at $0.004, dropping more than 60% from the date that rrm_bn4u made the statement above. Anyone who sold at the time of rrm_bn4u's comment, against his advice, would have prevented a loss of 60% on their value of PLNI stock and would not have regreted it.

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3. From: rrm_bcnu12/18/2005 12:05:55 AM

http://www.siliconinvestor.com/readmsg.aspx?msgid=21983133

False Statement:

"Only new shares issued from the Authorized Shares to the Outstanding Shares are dilutive (have a long term negative effect), and only then if they do not improve the company's cash flow."

the_worm06 Comments: details to follow.

4. From: rrm_bcnu12/18/2005 12:05:55 AM

http://www.siliconinvestor.com/readmsg.aspx?msgid=21983133

False Statement:

"If you issue shares to buy hardware that allows you to increase sales... that isn't dilutive to true valuation."

the_worm06 Comments: details to follow.




5. From: rrm_bcnu12/18/2005 12:05:55 AM

http://www.siliconinvestor.com/readmsg.aspx?msgid=21983133

False Statement:

"Shares that have been repurchased by the company are not considered issued stock, and are removed from the Outstanding Shares total, thus improving the metrics and the PPS.."

the_worm06 Comments: Part of the sentence above is false. A repurchase of shares by the company will not necessarily lead to an improved PPS (price per share) of the company. Two important parameters that should additionally be considered to determine whether the PPS would improve in a repurchase of shares are (1) the price that is paid per share in the repurchase and (2) the missed opportunity cost of spending the cash on the repurchase.

An example of (1) above (overpaying for the repurchase) that would result in no improvement of the PPS, or even a drop in PPS, would be if the company overpays for the repurchase of the shares by a considerable amount. For instance, in an extreme case, if PLNI borrowed $100 million and used the $100 million to purchase only 200 million PLNI shares from a particular stockholder (at 50 cents per share), the company would have retired only 200 million of the 2.3 billion common shares outstanding and would have burdened PLNI with $100 million of debt, carrying interest expenses of about $10 million per year (at a 10% interest cost). This repurchase would cause the PPS to drop.

An example of (2) above (missed opportunity cost) that would result in no improvement of the PPS, or even a drop in PPS, would be if the company was carrying significant cash, such as $20 million, and the market was assuming that the $20 million would be used for a lucrative acquisition - and instead the company used the cash to overpay for a common stock repurchase. This repurchase also would cause the PPS to drop.

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6. From: rrm_bcnu...12/26/2005 4:12:09 PM

http://www.siliconinvestor.com/readmsg.aspx?msgid=22004677

False Statement:

"The way I read this these people are already convicted in court and have refused to halt their activity. Are they crazy or just want some time in the state penn.?"

the_worm06 Comments: This is a completely false statement. No one has been convicted. The information that this promoter is referring to is a press release by a company copying a letter from their crooked attorney regarding a lawsuit. To state that someone has been convicted and to state that they might be headed towards the state penitentiary implies that they have commited a crime. No one has committed a crime. The promoter that posted these remarks is a step away from being sued for several millions dollars for posting defamatory statements and libel against a known individual, unless a full public apology by this promoter, rrm, is posted in the near future. It is recommended that this poster contact his attorney immediately regarding the seriousnous of his statements.

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7. jmhollen......Wed Dec 28, 2005 7:32 pm

http://snipurl.com/l4io

False Statement:

"PLNI's new subsidiary, Semco...................... "

the_worm06 Comments: As of the date of the post, PLNI had yet to formally announce that the acquisition of Semco had closed, therefore it could not have been a subsidiary of PLNI at the time of the post. This is an attempt by the promoter jmhollen to mislead the investors, by posting false and misleading information about PLNI, into believing that the assets and business of PLNI are greater than they really are.

More to follow in the near future




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