I'm very new to all of this and was wondering if some of you seasoned investors can tell me what this latest announcement means to someone who owns PRRM stock.

Thanks!
SPANKY

Prime Rate Investors, Inc. Acquires Television Station Stowe TV-10

September 24, 2004 16:32:00 (ET)

STOWE, Vt., Sep 24, 2004 (BUSINESS WIRE) -- Prime Rate Investors, Inc. (OTC.PK: PRRM) announced that Richard Astrom has purchased certain assets of Tampa Bay Mortgage Services, Inc., a wholly owned subsidiary of PRRM in exchange for all of his common stock in PRRM as well as the common stock of other majority interest shareholders in PRRM.

PRRM completed a share exchange and purchased a television station, Stowe TV-10 in exchange for 15 billion shares of PRRM paid to the shareholders of Stowe TV-10. Stowe TV-10 is now a wholly owned subsidiary of PRRM.

PRRM then sold its wholly owned subsidiary, Tampa Bay Mortgage Services, Inc. to National Hospitality Group, Inc. which is traded on the Pinksheets under the symbol NHGP. In this transaction, each shareholder of PRRM on record at close of business on September 24, 2004 will receive one (1) share of NHGP for each 100 shares of PRRM owned on September 24, 2004. Damian Guthrie, president of Tampa Bay Mortgage Services, Inc will remain president of Tampa Bay Mortgage Services and is now the president of NHGP.

The present officers and directors of PRRM have resigned and the new President is Daniel Burgess, the Vice President is Ian Lamphere and the Secretary is James Morris. Burgess, Lamphere, and Morris are also new directors of the Company along with Pierce Williams.

About Stowe TV-10. Stowe TV-10 is a cable broadcast channel that carries RSN national and locally produced resort-sports programming to the Vermont towns of Cambridge, Jeffersonville and Stowe - the most unique and historic hub of skiing in the Eastern United States. From its studio in the village of Stowe, Stowe TV-10 reaches hundreds of thousands of people a year in the greater Mount Mansfield and Smuggler's Notch regions. Through the diversity of its content, Stowe TV-10 is the visitor's source for local information, and the only channel for resort sports.

For more information, visit the company's websites www.prrm.us and www.stowetv10.com.

This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic and business conditions, and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

SOURCE: Prime Rate Investors, Inc.

Welcome to Allstocks. All the background info, history and opinions you need is on an existing thread. Please use that one. Making multiple threads makes it harder to keep track of the posts on any particular stock. I know you're new. Don't worry about it.
http://www.allstocks.com/stockmessageboard/ubb/Forum8/HTML/008405-7.html

What we know: (The way I see it)

PRRM owns a TV station:

PRRM completed a share exchange and purchased a television station, Stowe TV-10 in exchange for 15 billion shares of PRRM paid to the shareholders of Stowe TV-10. Stowe TV-10 is now a wholly owned subsidiary of PRRM

It would seem this is an interesting direction to take travel but let me run with it. Stowe TV was probably looking to expand out and needed a public vehicle to do it. Without laying out for an IPO why not just reverse into an existing public entity. I've seen this before with other companies wanting to go public so I'm not alarmed.

Result: We all have and keep our PRRM shares in what is now a media company. It may not have the market viability that QBID has but you never know what direction the programming might take and with the right touch we could have another QTV scenario (though from a conservative view unlikely) in our pockets. Advantage for current PRRM stockholders is that this company already has revenue and is a national affiliate (RSN) with a subscriber base. PRRM also has new management.

IMO good for a 10 bagger...at least.

The kicker: Tampa Bay Mortgage is reversed into National Hospitality Group, Inc. (NHGP). The word reverse has two meanings here. Tampa Bay Mortgage is reverse merged into a non trading shell. There is a lot of opportunity here guys as the company now has NO DEBT and can operate in a controlled environment. Now we take the existing share structure of PRRM and by 100/1 back it into NHGP the total A/S is about 200 million with 150 million being restricted and 50 million being free tradeable. Take the revenue that can be realized from the loans, etc. and now IMO we really have something.

Example: 2 yr asset based loans totalling 50 million at an 18% return annually(Im not sure about this part returns 18 million in interest at the end of the term that would be considered revenue?) (If someone is familiar with this type of lending I would appreciate any input) Under this scenario we could really see a PPS of .25+ considering that we may open at .01 or higher as NHGP based on revenue alone.

Again I'm not positive about the mortgage side of this but this new share structure would prove EXTREMELY favorable to this business model. Also consider all the damage that has been done to the southeast this summer totalling in the billions and the VERY SLOW turnaround in getting state and federal relief over and above insurance payouts. Many businesses will need bridge capital to keep themselves going. This would be the fastest best solution.

I know JT's agenda has everyone scratching their head and this PR took us all by surprise but now that we understand why the MMs left the bid even with all the buying pressure this really looks positive IMO. Hang in there! GLTA