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Poised to triple

From: James John
Subject: Poised to triple
Date: Sun, 10 Jul 2005 11:47:55 -0500


The Definitive Resource for Relative Value & Risk Arbitrage Trading 

New Trading Alert


CONGRATULATIONS to all our subscribers who purchased shares of Cable Vision 
Systems Corp. (NYSE:CVC) at $25.65 on Thursday, June 2nd, as instructed.  
Based on many factors including depressed valuations in the space, we 
believed that an acquisition was eminent, and that CVC was the target.  We 
didna?Tt know that the a?oacquisitiona?? would actually come from within, as 
companya?Ts controlling family, the Dolans, announced a $7.9 Billion 
privatization tender offer for the outstanding shares on June 20th.  Our 
subscribers realized a 28% return in 18 days!

Opportunity Analysis:

It is indeed an unusual case when the MergerTrader recommends anything other 
than Listed or NASDAQ securities that are either mispriced relative to the 
terms of a recently announced transaction, or that reflect significant price 
imbalances based on the anticipation of an event has not yet been announced 
(as referenced by or recommendation earlier this month of Cablevision 
Systems Corp), but every once in a while we come across opportunities that 
we ourselves would have normally overlooked. That is the case with our 
current recommendation, which happens to trade in the Over the Counter (OTC) 
markets.  For those of you with little or no experience in the OTC markets, 
they are highly volatile and usually illiquid. While those factors would 
dissuade many from participating altogether, the opportunities we highlight 
are based on FACT, NOT SPECULATION. Simply put, and as always, we take 
positions based on completed (or soon to be completed) transactions and make 
trades based on market pricing imperfections whereby we can a?~tip the scales 
in our favora?T for the possibility of a guaranteed return.

AFMN, Inc. represents such an opportunity. On May 17th, 2005, the Company 
signed a definitive agreement with Medical Media Television, Inc. to be 
acquired. Under the terms of agreement, AFMN shareholders of record will 
receive one share of common stock in MMTV for every share of AFNN they own 
at the closing date of the transaction. Typically speaking, the acquiring 
Company, in this case Medical Media Television, would immediately file a 
registration statement with the Securities and Exchange Commission (known as 
a Form S-4), and once the form is declared a?oeffectivea??, the two companies 
will consummate the transaction. With shares of MMTV currently trading at 
$1.55, shareholders of AFNN will realize a 244% gain for their shares when 
the transaction is completed, based on AFNNa?Ts closing price today of $.45.

We are highlighting this opportunity now because the short attention span of 
the markets has made the risk/reward scenario compelling for us again. 
Shortly before and after the announcement, shares of AFNN traded from a low 
of $.50 to a high of $1.25 on much higher than average volume. We, 
admittedly, missed this trade the first time around. Its seems, however, 
that many people who purchased in anticipation of the transaction being 
completed were not willing to wait the relatively short period of time for 
the S-4 to become effective (typically several months) and the shares of 
AFNN have retraced back to the $.45 price level. While we would normally 
engage in a typical risk arbitrage or relative value tactic of buying shares 
of the target company and short selling shares of the acquiring company, 
that is not possible in this scenario, as SEC and NASD rules prevent the 
short sale of stocks under $5.

Given that fact, we recommend that our subscribers purchase shares of AFNN 
and either take profits when the price of the shares reaches parody with 
those of MMTV and wait until the transaction is completed (given the 
duration of time that has past since the announcement we believe the closing 
should happen within 30 to 45 days), or take profits. Because of the unusual 
circumstances given this recommendation (more particularly, the OTC markets 
on which these securities trade) we recommend that no subscriber allocates 
more than 5% of their total risk capital to this trade, as the price 
volatility inherent in this trade will be greater that our typical 
recommendation. Either way, shares of AFNN do carry ten times our normal 
target profit potential, and therefore represent a way for us to 
significantly enhance our Alpha (risk adjusted returns) in the short term.

MergerTrader Recommends: BUY AFNN up to $1.30

DISCLAIMER This research report is provided as an information service only 
and the information contained in this research report is believed to be 
factual. The purpose of this research report is to provide awareness of the 
referenced companya?Ts public securities, its products and/or services. 
MergerTrader and its affiliates, publish research reports providing 
information on selected companies that it believes has investment potential. 
Some companies that MergerTrader researches will not be appropriate for all 
investors, particularly those companies listed on the OTC Bulletin Board and 
Pink Sheet exchanges, which are generally development stage companies with 
very risk profiles. The statements and opinions in this report should not be 
construed as an offer or solicitation to buy or sell any security. 
MergerTrader is not a registered investment advisor or broker-dealer and 
accepts no liability for any loss arising from an investor's reliance on or 
use of this report. Each person reading this research report is urged to 
conduct their own due diligence on the referenced company before they 
invest. An investment in the referenced company is highly speculative and 
should not be considered unless a person can afford a complete loss of 
investment. MergerTrader has been compensated for the writing of this 
research report, and as such, the opinions or recommendations contained 
herein may constitute a conflict of interest. Subsequently, MergerTrader 
reserves the right to buy or sell shares of AFNN stock in the open market. 
For further details concerning risks and uncertainties, see the SEC filings 
of AFNN.

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