Dynamic Response Group Inc. (fka DRGZ)

[RandyKCMO]

POSSIBLE REASONS DRGP IS TRADING AT 3 CENTS

I think figuring out the right answer to this question is hugely important. What are the possibilities?

1. DILUTION. Is the stock price languishing because the company is issues shares for continuing operations or expansion?
ANSWER: The company says no. No one denies that our outstanding shares have increases over the last year...from 65 million in December 31, 2006 to 81 Million by June 30, 2007. But since then our outstanding shares have only increasesd modestly to 90.5 Million shares outstanding.

2. IMMINENT FAILURE/BANKRUPTCY. As the company's stock price is stuck in such a low range, it must be because the company is near the brink of failure.
ANSWER: The company is better off today than it has ever been. Huge sales, increasing cash flow, hopefully, continuing net income. It is clear that there are some pretty talented people involved with DRG.

3. REVENUES MUST BE BOGUS Who has ever heard of a company growing revenues like DRG is and their stock price continuing in the tank? Could the company must be a scam?
ANSWER: Well, I don't have an explanation for the low stock price, but we know that DRGP is a fully reporting Bulletin Board company. Revenues have ramped up over the last two years, just as the company has predicted.

4. INSIDERS MUST BE SELLING OUT THEIR SHARESWhere else could all the selling be coming from?
ANSWER: Well, over the last month an a half, DRG has had higher volume than at any other time in its history. I do not doubt that some of this volume was short term players jumping on. When the stock slowed down and started backing off, many of these guys looking for the quick profit probably just flipped out.

Also, it has been rumored that bunches of shares have been paid out for promotion and exchanged for services in the first part of 2007 (expecially in the process of going public). Are some of these being added to the mix? Possibly, but who knows?

Actually, the evidence controdicts this theory. In the 2007 10K it was reported that CEO Melissa Rice now owns at least 2.4 Million shares. Board Member Emus reported owning 2.2 Million shares. As the original Form 3 and no Form 4's have been filed, we can only wonder if insiders are backing up their words by adding to their ownership percentages and buying up these low priced shares.

Any other ideas or theories? I'd be glad to hear them.




The Light has come into the world, but men have preferred darkness. If you want to know the Truth, just ask. :)

Check out a new Ihub board I've started:
AS IRON SHARPENS IRON http://investorshub.advfn.com/boards/board.aspx?board_id=12482