17
                  SECURITIES AND EXCHANGE COMMISSION

                        Washington, D.C. 20549

                              FORM 10-QSB

(Mark One)

[X]  Quarterly report under Section 13 or 15(d) of the Securities
   Exchange Act of 1934 for the quarterly period ended June 30, 2000.

[    ] Transition report under Section 13 or 15(d) of the  Securities
   Exchange Act of 1934 for the transition period from ------------ to
   --------------


     Commission file number:  000-29141


                      PREFERRED INVESTMENTS, INC.
                --------------------------------------
   (Exact name of small business issuer as specified in its charter)



            Wyoming                         86-0970149
(State or other jurisdiction of  (I.R.S. Employer Identification
incorporation or organization)                 No.)




              5505 N. Indian Trail, Tucson, Arizona 85750
              ------------------------------------------
          (Address of principal executive office) (Zip Code)


                            (520) 577-1516
                        ----------------------
                      (Issuer's telephone number)


      Check  whether the issuer: (1) filed all reports required  to  be
filed  by Section 13 or 15(d) of the  Exchange  Act during the past  12
months (or for such shorter period that the  registrant was required to
file   such  reports),  and  (2)  has  been  subject  to  such   filing
requirements for the past 90 days.

                    Yes XX                   No
                      -----                    -----

      The  number  of outstanding shares of the issuer's common  stock,
$0.001 par value, as of June 30, 2000 was 1,000,000.

                           TABLE OF CONTENTS

                    PART I - FINANCIAL INFORMATION


ITEM 1.  FINANCIAL STATEMENTS..................................3

     Condensed Balance Sheets as of December 31, 1999
          and June 30, 2000....................................5

     Condensed Statements of Operations
          for the Three and Six Month Periods Ended
          June 30, 2000 and 1999...............................6

     Condensed Statements of Cash Flows
          for the Six Month Periods Ended
          June 30, 2000 and 1999...............................7

     Notes to Unaudited Condensed Financial Statements.........9


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS..................10


                      PART II - OTHER INFORMATION

ITEM 1 LEGAL PROCEEDINGS.......................................12

ITEM 2 CHANGES IN SECURITIES...................................12

ITEM 5 OTHER INFORMATION.......................................12


INDEX TO EXHIBITS..............................................13





            [THIS SPACE HAS BEEN INTENTIONALLY LEFT BLANK]



                                PAGE  2



                                PART I


ITEM 1.  FINANCIAL STATEMENTS

       As   used   herein,  the  term  "Company"  refers  to  Preferred
Investments,  Inc.,  a  Wyoming corporation, and its  subsidiaries  and
predecessors unless otherwise indicated.  Unaudited, condensed  interim
financial  statements including a balance sheet for the Company  as  of
the   quarter  ended  June  30,  2000  and  statements  of  operations,
statements of shareholders equity and statements of cash flows for  the
interim  period up to the date of such balance sheet and the comparable
period of the preceding year.



            [THIS SPACE HAS BEEN LEFT BLANK INTENTIONALLY]







                                PAGE  3



                    INDEPENDENT ACCOUNTANTS' REPORT





Preferred Investments, Inc.
(A Development Stage Company)



      We  have  reviewed the accompanying balance sheets  of  Preferred
Investments, Inc. (a development stage company) as of June 30, 2000 and
December  31,  1999, and the related statements of operations  for  the
three  and  six  month periods ended June 30, 2000 and 1999,  and  cash
flows  for  the six month periods ended June 30, 2000 and 1999.   These
financial   statements  are  the  responsibility   of   the   Company's
management.

      We  conducted our review in accordance with standards established
by the American Institute of Certified Public Accountants.  A review of
interim   financial  information  consists  principally   of   applying
analytical procedures to financial data and making inquiries of persons
responsible  for financial and accounting matters.  It is substantially
less  in  scope  than an audit conducted in accordance  with  generally
accepted  auditing standards, the objective of which is the  expression
of  an  opinion  regarding the financial statement taken  as  a  whole.
Accordingly, we do not express such an opinion.

       Based   on  our  review,  we  are  not  aware  of  any  material
modifications  that  should  be  made  to  the  accompanying  financial
statements  for  them  to  be  in conformity  with  generally  accepted
accounting principles.

                              Respectfully submitted



                              /s/ Robison, Hill & Co.
                              Certified Public Accountants


Salt Lake City, Utah
August 9, 2000





                                 PAGE  4




                      PREFERRED INVESTMENTS, INC.
                     (A Development Stage Company)
                            BALANCE SHEETS


                                              June 30,      September 30,
                                                2000               1999
                                           --------------    ---------------

ASSETS:                                       $      -         $       -
                                           ==============    ================
LIABILITIES & STOCKHOLDERS'EQUITY
Current Liabilities:
Accounts Payable & Accrued Expenses           $    250         $       -
                                           --------------    ----------------
Stockholders' Equity:
  Common Stock, Par value $.001
    Authorized 100,000,000 shares,
    Issued 1,000,000 Shares at
    June 30, 2000 and December 31, 1999          1,000             1,000
  Paid-In Capital                                2,255                75
  Retained Deficit                              (1,055)           (1,055)
  Deficit Accumulated During the
    Development Stage                           (2,455)              (25)
                                            -------------    ---------------
    Total Stockholders' Equity                    (250)                -
                                            -------------    ----------------

     Total Liabilities and
       Stockholders' Equity                   $      -         $       -
                                            =============    ================





















         See accompanying notes and accountants' report.



                               PAGE 5



                      PREFERRED INVESTMENTS, INC.
                     (A Development Stage Company)
                       STATEMENTS OF OPERATIONS



                                                                  Cumulative
                                                                     since
                     For the Three Months    For the Nine Months  October 20
                             Ended                 Ended         1999 Inception
                            June 30,              June 30,        of Development
                      --------------------  ---------------------    Stage
                        2000       1999       2000        1999    --------------
                        ----       ----       ----        ----

Revenues              $      -    $     -    $    -      $    -       $      -
                      ---------  ---------  --------    ---------    -----------

Expenses
   General and
Administrative           1,550          -      2,430           -         2,455
                      ---------  ---------   --------   ----------   -----------

       Net Loss       $ (1,550)   $     -    $(2,430)    $     -     $  (2,455)
                      =========  =========   ========    ========= ===========
Basic & Diluted
loss per share        $      -    $     -    $     -     $      -
                      =========  =========   ========    =========



























         See accompanying notes and accountants' report.


                               PAGE  6
                      PREFERRED INVESTMENTS, INC.
                     (A Development Stage Company)
                       STATEMENTS OF CASH FLOWS


                                                               Cumulative
                                                                  Since
                                                                 October
                                 For the nine months ended       20,1999
                                          June 30,            Inception of
                                 --------------------------   Development
                                     2000           1999         Stage
                                 ------------  ------------   ---------------


CASH FLOWS FROM OPERATING
-------------------------
ACTIVITIES:
----------
Net Loss                          $  (2,430)      $      -        $   (2,455)
Increase (Decrease) in:
  Accounts Payable                      250              -              (200)
                                 ------------    ------------     --------------
Net Cash Used in operating
   Activities                     $  (2,180)      $      -        $   (2,255)


CASH FLOWS FROM INVESTING
-------------------------
ACTIVITIES:
-----------
Net cash provided by investing
activities                                 -             -                 -
                                  ------------    -----------      -------------

CASH FLOWS FROM FINANCING
-------------------------
ACTIVITIES:
-----------
Capital contributed by
 shareholder                           2,180             -             2,255
                                  ------------    -----------      -------------
Net Cash Provided by
  Financing Activities                 2,180             -             2,255
                                  ------------    -----------      -------------

Net (Decrease) Increase in
  Cash and Cash Equivalents                -             -                 -
                                  ------------    -----------      -------------
Cash and Cash Equivalents
  at Beginning of Period                   -             -                 -
                                  ------------    -----------      -------------
Cash and Cash Equivalents
  at End of Period                 $       -       $     -          $      -
                                  ============    ===========      =============

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
------------------------------------------------
Cash paid during the year for:
  Interest                         $       -       $      -         $       -
  Franchise and income taxes       $       -       $      -         $      75

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: None
-----------------------------------------------------------------------










         See accompanying notes and accountants' report.




                               PAGE  7












                      PREFERRED INVESTMENTS, INC.
                     (A Development Stage Company)
                     NOTES TO FINANCIAL STATEMENTS
   FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999


NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

      This  summary  of accounting policies for Preferred  Investments,
Inc.  is  presented to assist in understanding the Company's  financial
statements.   The  accounting policies conform  to  generally  accepted
accounting  principles  and  have  been  consistently  applied  in  the
preparation of the financial statements.

     The unaudited financial statements as of June 30, 2000 and for the
three  and six months then ended reflect, in the opinion of management,
all  adjustments  (which  include only  normal  recurring  adjustments)
necessary  to  fairly  state  the financial  position  and  results  of
operations for the three and six months.  Operating results for interim
periods  are  not necessarily indicative of the results  which  can  be
expected for full years.

Organization and Basis of Presentation

      The  Company  was incorporated under the laws  of  the  State  of
Wyoming  on April 9, 1997.  The Company ceased all operating activities
during  the  period  from April 9, 1997 to October  20,  1999  and  was
considered  dormant.  Since October 20, 1999, the  Company  is  in  the
development stage, and has not commenced planned principal operations.

Nature of Business

      The Company has no products or services as of June 30, 2000.  The
Company  was  organized  as  a vehicle to seek  merger  or  acquisition
candidates.   The  Company  intends to  acquire  interests  in  various
business opportunities, which in the opinion of management will provide
a profit to the Company.

Cash and Cash Equivalents

     For purposes of the statement of cash flows, the Company considers
all  highly liquid debt instruments purchased with a maturity of  three
months  or less to be cash equivalents to the extent the funds are  not
being held for investment purposes.

Pervasiveness of Estimates

      The  preparation  of  financial  statements  in  conformity  with
generally  accepted accounting principles required management  to  make
estimates  and assumptions that affect the reported amounts  of  assets
and liabilities and disclosure of contingent assets and liabilities  at
the  date  of  the  financial statements and the  reported  amounts  of
revenues  and  expenses  during the reporting period.   Actual  results
could differ from those estimates.

Loss per Share

      The  reconciliations of the numerators and  denominators  of  the
basic loss per share computations are as follows:




                                    PAGE  8



                      PREFERRED INVESTMENTS, INC.
                     (A Development Stage Company)
                     NOTES TO FINANCIAL STATEMENTS
   FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
                              (Continued)



                                     Income     Shares
                                  -----------  ------------  Per Share
                                  (Numerator)  (Denominator)   Amount

                            For the three months ended June 30, 2000
                            -----------------------------------------
Basic & Diluted Loss Per Share
Loss to common shareholders      $ (1,550)       1,000,000  $      -
                                 =========      ==========  ==========

                            For the six months ended June 30, 2000
                            --------------------------------------

Basic & Diluted Loss  Per Share
Loss to common shareholders      $ (2,430)       1,000,000   $      -
                                 ===========    ===========  ==========

                            For the three months ended June 30, 1999
                            ----------------------------------------
Basic & Diluted Loss  Per Share
Loss to common shareholders      $      -        1,000,000   $       -
                                 ===========    ===========  ===========

                           For the six months ended June 30, 1999
                           --------------------------------------
Basic & Diluted Loss  Per Share
Loss to common shareholders      $      -        1,000,000   $       -
                                 ===========     ==========  ===========


      The effect of outstanding stock equivalents are anti-dilutive for
June 30, 2000 and 1999 and are thus not considered.

Reclassification

      Certain  reclassifications have been made in the  1999  financial
statements to conform with the June 30, 2000 presentation.

NOTE 2 - INCOME TAXES

      As  of  June  30,  2000, the Company has  a  net  operating  loss
carryforward for income tax reporting purposes of approximately  $3,000
that may be offset against future taxable income through 2011.  Current
tax laws limit the amount of loss available to be offset against future
taxable   income  when  a  substantial  change  in  ownership   occurs.
Therefore, the amount available to offset future taxable income may  be
limited.  No tax benefit has been reported in the financial statements,
because the Company believes there is a 50% or greater change the carry-
forwards  will expire unused.  Accordingly, the potential tax  benefits
of  the loss carry-forwards are offset by a valuation allowance of  the
same amount.

NOTE 3 - DEVELOPMENT STAGE COMPANY

      The  Company has not begun principal operations and as is  common
with  a development stage company, the Company has had recurring losses
during its development stage.




                                  PAGE  9



                      PREFERRED INVESTMENTS, INC.
                     (A Development Stage Company)
                     NOTES TO FINANCIAL STATEMENTS
   FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
                              (Continued)

NOTE 4 - COMMITMENTS

      As  of  June  30,  2000 all activities of the Company  have  been
conducted  by  corporate officers from either their homes  or  business
offices.  Currently, there are no outstanding debts owed by the Company
for the use of these facilities and there are no commitments for future
use of the facilities.

NOTE 5 - STOCK SPLIT

      On October 20, 1999 the Board of Directors authorized 1,000 to  1
stock  split,  changed the authorized number of shares  to  100,000,000
shares and the par value to $.001 for the Company's common stock.  As a
result of the split, 999,000 shares were issued.  All references in the
accompanying  financial statements to the number of common  shares  and
per-share  amounts  for 1999 have been restated to  reflect  the  stock
split.


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

This  Quarterly  Report  contains  certain  forward-looking  statements
within  the  meaning of Section 27A of the Securities Act of  1933,  as
amended,  and Section 21E of the Securities Exchange Act  of  1934,  as
amended,  which are intended to be covered by the safe harbors  created
thereby.   Investors are cautioned that all forward-looking  statements
involve  risks  and  uncertainty,  including  without  limitation,  the
ability  of the Company to continue its expansion strategy, changes  in
costs  of  raw  materials, labor, and employee  benefits,  as  well  as
general  market  conditions, competition  and  pricing.   Although  the
Company  believes  that the assumptions underlying the  forward-looking
statements  contained  herein are reasonable, any  of  the  assumptions
could be inaccurate, and therefore, there can be no assurance that  the
forward-looking statements included in this Quarterly Report will prove
to  be accurate.  In light of the significant uncertainties inherent in
the  forward-looking statements including herein, the inclusion of such
information  should not be regarded as are presentation by the  Company
or  any other person that the objectives and plans of the Company  will
be achieved.

As  used  herein  the  term "Company" refers to Preferred  Investments,
Inc.,  a  Wyoming corporation and its predecessors, unless the  context
indicates  otherwise.  The Company is currently a shell  company  whose
purpose is to acquire operations through an acquisition or merger or to
begin its own start-up business.

The  Company is in the process of attempting to identify and acquire  a
favorable business opportunity.  The Company has reviewed and evaluated
a number of business ventures for possible acquisition or participation
by  the  Company.  The Company has not entered into any agreement,  nor
does  it  have any commitment or understanding to enter into or  become
engaged  in  a transaction as of the date of this filing.  The  Company
continues  to  investigate, review, and evaluate business opportunities
as  they become available and will seek to acquire or become engaged in
business opportunities at such time as specific opportunities warrant.

Results of Operations



                                    PAGE  10



The Company had no sales or sales revenues for the three and six months
ended June 30, 2000 or 1999 because it is a shell company that has  not
had any business operations for the past three years.

The Company had no costs of sales revenues for the three and six months
ended June 30, 2000 or 1999 because it is a shell company that has  not
had  any business operations for the past three years.  The Company had
$1,550 and $2,430 in general and administrative expenses for the  three
and  six  month periods ended June 30, 2000 and $0 for the same periods
in 1999.

The  Company recorded net loss of $1,550 and $2,430 for the  three  and
six months ended June 30, 2000 compared to $0 loss for the same periods
in 1999.

Capital Resources and Liquidity

At  June 30, 2000, the Company had total current assets of $0 and total
assets  of  $0 as compared to $0 current assets and $0 total assets  at
December  31, 1999.  The Company had a net working capital  deficit  of
$250 and $0 at June 30, 2000 and December 31, 1999.

Net stockholders' deficit in the Company was $250 and $0 as of June 30,
2000 and December 31, 1999.






                                PAGE 11



                       PART II-OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

None.


ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

None.


ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None/Not Applicable.


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS

None/Not Applicable.


ITEM 5.  OTHER INFORMATION

None.


ITEM 6.  EXHIBITS

(a)  Exhibits.   Exhibits  required to  be  attached  by  Item  601  of
     Regulation S-B are listed in the Index to Exhibits on page  12  of
     this Form 10-QSB, and are incorporated herein by reference.

(b)  Reports on Form 8-K.  No reports on Form 8-K were filed during the
     period covered by this Form 10-QSB.


                              SIGNATURES

      In  accordance  with the requirements of the  Exchange  Act,  the
registrant  caused  this  report to be signed  on  its  behalf  by  the
undersigned, thereunto duly authorized, this 9th day of August, 2000.

Preferred Investments, Inc.



/s/  Daniel L. Hodges
  Daniel L. Hodges                                     August 9, 2000
  President/CFO and Director



                                  PAGE  12


                             EXHIBIT INDEX


Exhibit No.    Page No.       Description

27        12             Financial Data Schedule "CE"














                                PAGE  13


[ARTICLE]      5

     THIS  SCHEDULE  CONTAINS SUMMARY FINANCIAL  INFORMATION  EXTRACTED
FROM  THE UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE  30,
2000  THAT WERE FILED WITH THE COMPANY'S REPORT ON FORM 10-QSB  AND  IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.

[CIK]                         0001101917
[NAME]                   PREFERRED INVESTMENTS, INC.
[MULTIPLIER]                       1,000
[CURRENCY]                         U.S. Dollars


[PERIOD-TYPE]                 6-MOS
[FISCAL-YEAR-END]             DEC-31-2000
[PERIOD-START]                APR-1-2000
[PERIOD-END]                  JUN-30-2000
[EXCHANGE-RATE]               1
[CASH]                        0
[SECURITIES]                  0
[RECEIVABLES]                 0
[ALLOWANCES]                  0
[INVENTORY]                   0
[CURRENT-ASSETS]              0
[PP&E]                        0
[DEPRECIATION]                0
[TOTAL-ASSETS]                0
[CURRENT-LIABILITIES]         0
[BONDS]                       0
[PREFERRED-MANDATORY]         0
[PREFERRED]                   0
[COMMON]                      1
[OTHER-SE]                    (1)
[TOTAL-LIABILITY-AND-EQUITY]  0
[SALES]                       0
[TOTAL-REVENUES]              0
[CGS]                         0
[TOTAL-COSTS]                 0
[OTHER-EXPENSES]              2
[LOSS-PROVISION]              0
[INTEREST-EXPENSE]            0
[INCOME-PRETAX]               (2)
[INCOME-TAX]                  0
[INCOME-CONTINUING]           (2)
[DISCONTINUED]                0
[EXTRAORDINARY]               0
[CHANGES]                     0
[NET-INCOME]                  (2)
[EPS-BASIC]                   0
[EPS-DILUTED]                 0



#743654


                                  PAGE  14