Air:

Did you get any insight into why e-trade is restricting sales? I E-mailed them but did not get a response.

I have a theory that Schwarz/Lincoln have been constantly dropping shares on the market and my gut tells me they will be under 10 million shares the next time they report their investor holdings. This constant selling has been measured so as to not allow the price to rise under good news, and has, under low demand situations taken the price into the $.40's.

As most know, at one point, S&L held as much as 9.9%. The last time I noted them at near this percentage was when outstanding shares were about 340 million, and S&L holdings were near 34 million shares and potentially another 80 million warrants available (not all S&L's). These numbers would have driven total outstanding shares to 419 million (Est). Patriot has since purchased enough warrants to keep the outstanding share number near 390 million shares.

S&L proceeded to convert somewhere in the neighborhood of 30 to 40 million warrants, selling shares along the way to keep their holdings below the 9.9%. But guess what, late last winter we see that they have reported holdings near 29 million shares with additional warrants still available for conversion. That is nearly 10 million shares below their allowed potential. Since then warrants have been totally eliminated as far as S&L are concerned. This fall, I believed their ownership was near 22 million (this is where I may be off on the number a bit) indicating a continuing liquidation of their position.

S&L has taken much more out of this investment than they ever put in. Any time they would try to liquidate their position would have a strong effect upon the share price, so their thought process would be, lets get to a small core position, get out of the way of the process and on to other investments. I would much rather see that happen before any big run, than wait till the price gets to $2+ and see the damage they could do at that point.

All this is conjecture based upon the few numbers that have come out showing a definite decline in the number of reported holdings since they were in the 34 million range. JMO

C