Whenever a penny stock that is the subject of an active promotional campaign by penny stock pimps releases PRs to coincide with that campaign, you know you need to read the PRs very carefully.
This morning's PR is no exception. I've highlighted the key words:
"Emperial Americas, Inc. (OTCBB: TEXX) Management today announced that it has signed a Memorandum of Understanding for the purchase of an equity position in Imperial Beverage Group, Inc.
CEO Alonzo Pierce said, "The Company has signed a MUA for an equity position in Imperial Beverage Group, Inc., who has signed an LOI for the purchase of the assets of Imperial Beverage Group, LLC, a Texas Licensed Alcohol Distributor. The purchase not only allows the Company to participate in the profits, but it will also allow the Company's brands to be distributed by Imperial Beverage Group, causing our operational cost to shrink dramatically. This opportunity provides operational control of our business from inventory, distribution, cash flow and marketing which will result in increased profits. Imperial will also invite other suppliers into the organization that are making great headway for their brands, but are being slowed because of the larger distributors' obligation to the national brands. Imperial will offer up-close and personal opportunities to showcase their brands as well as create jobs around the state for salesmen to manage the business."
I wonder what an "MUA" is, incidentally? Anybody care to hazard a guess? MoA? MoU?
A LOI (Letter of Intent), of course, is a non-binding letter generally used to try to fool naive and gullible "investors" into buying a penny stock so that the stock pimps and their paymasters can dump their own stock into any resulting stability in the pps.
Note the way the PR is carefully crafted to make you think the "purchase" has already happened, when in fact it hasn't yet and almost certainly never will do.
What TEXX needs to do - and almost certainly never will do - is to release auditied filings showing precisely what assets - cash, contracts and others - it owns. It has resolutely refused to do this, and those of us who study penny stock scams like TEXX (and its predecessor, TEMN) know precisely why.
TEXX is a pure momo play for those with excellent timing - as a buy and hold it stinks.