Electronic Game Card, Inc (fka EGMIQ)

[stonehenge]

Hi Zag, 7 months ago I posted the simularities between both cases. I'll repost 2 of my posts. Sad conclusion is that I was right 100%. The longs have been ripped:



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message_id=48035397
stonehenge
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Friday, March 19, 2010 3:11:20 PM
Re: GWMAN post# 12626
Post # of 14339

GWMAN, exactly! And why is it so hard to reconstruct the financial situation they are in?
I guess the cash position wasn't that high at all...
And that explains the weird trading, which had all the signs of heavy dilution.
This story will have more chapters. That's for sure. IMO this is only the beginning of this book.




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stonehenge
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Tuesday, March 02, 2010 1:51:00 AM
Re: stonehenge post# 10635
Post # of 14338

I really think they cooked the books in a major way. It does have a LOT of simularities with the following case:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=46901137

That company had analysts following the stock, applied for an uplisting and had large investors/institutions taking positions, mainly because of the very good balance sheet , huge earnings, promised buy back etc., etc.

To create the image of a vibrant enterprise, they fraudulently reported millions in fictitious earnings, revenues, expenses, and assets. To conceal the true results, they created fictitious periodic bank statements , checks, invoices and a general ledger, which they supplied to the auditor.
And while the B/S showed 12 million in cash, due to ongoing positive operating cashflows (according to the I/S), cash turned out to be NOT there at all....

Tell me there are no simularities.

BTW, the CEO of that company died in jail.