American Green Inc (ERBB)

[IBurnPurpleKush]

DEATH SPIRAL,DILUTION,PUMP AND DUMP,BAGHOLDER :(

They just keep on DILUTING more and more every year :(

Id feel like a BAGHOLDER If I was holding this LONG TERM :(

The DEATH SPIRAL has only just began IMHO :(

This is just one big PUMP AND DUMP IMHO :(

ALL OF THE debentures CONVERT AT THE 18 MONTH OR 360 DAY LOW WITH A 50 PERCENT DISCOUNT:

The debentures accrue interest at 10% per annum and will convert into the company’s common stock at 50% of the lowest closing bid price 360 trading days before the conversion date.

The debentures accrue interest at 10% per annum and will convert into the company’s common stock at 50% of the lowest closing bid price 18 months before the conversion date.

2,905,313,180 shares retired $1,743,608 of debenture debt. All of those shares got issued at the average pps of about 0.0006
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=104192881

1,367,866,228 shares got issued to the former president or presidents of ERBB
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=104268153

Any further conversions will cause more price drops... $1,285,646 more dollars worth of debenture debt will be converted at the 360 day low Or 18 month with a 50 percent discount. (which will be 0.0006 until 6/2015)
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=104243206

http://www.investopedia.com/terms/d/dilution.asp

Definition of 'Dilution'

A reduction in the ownership percentage of a share of stock caused by the issuance of new stock. Dilution can also occur when holders of stock options (such as company employees) or holders of other optionable securities exercise their options. When the number of shares outstanding increases, each existing stockholder will own a smaller, or diluted, percentage of the company, making each share less valuable. Dilution also reduces the value of existing shares by reducing the stock's earnings per share.

http://www.investopedia.com/terms/b/bag-holder.asp

Investopedia explains 'Bag Holder'

Symbolically, the investor is left holding a bag full of worthless material, representing worthless stock. The bag holder, typically, will retain an investment even though there is convincing evidence that the value will continue to drop.

There are several reasons this might happen, such as neglecting an underperforming portfolio, an investor not wanting to admit a mistake, or just plain hope that the stock will recover. Setting limits on losses and having a good exit strategy are ways to avoid this situation.

http://www.investopedia.com/terms/d/deathspiral.asp

Investopedia explains 'Death Spiral'

This type of loan is undertaken by companies that desperately need cash. It is called a death spiral because companies' stocks often plunge drastically after they take on these types of loans. It is important to note that death spirals often allow buyers to convert the bonds into shares at a fixed conversion ratio in which the buyer has a large premium.

For example, a bond with a face value of $1,000 may have a convertible value of $1,500, which means that a bondholder will receive $1,500 dollars worth of equity for giving up the $1,000 bond.

However, upon a conversion, more shares are created, which dilutes the share price. This drop in price may cause more bond holders to convert, because the lower share price means that they will be receiving more shares. Any further conversions will cause more price drops as the supply of shares increases, causing the process to repeat itself as the stock's price spirals downward.

http://en.wikipedia.org/wiki/Bagholder

In U.S. financial slang, a bagholder is a shareholder left holding shares of worthless stocks.[1]

The shareholders could be caught up in a corporate bankruptcy and accounting scandal, as was the case with Enron and Worldcom, or the victims of a pump and dump scheme, in which naive and unsophisticated investors fall victim to e-mail spam, rigged stock tip forums, or other tricks used by stock touts to drive up the shares of worthless penny stocks.

The term has also been applied as a term of derision to real estate investors.[2]

The word is derived by combining shareholder with the expression "left holding the bag."

http://www.sec.gov/answers/pumpdump.htm

"Pump-and-Dumps" and Market Manipulations
“Pump-and-dump” schemes involve the touting of a company’s stock (typically small, so-called “microcap” companies) through false and misleading statements to the marketplace. These false claims could be made on social media such as Facebook and Twitter, as well as on bulletin boards and chat rooms. Pump-and-dump schemes often occur on the Internet where it is common to see messages posted that urge readers to buy a stock quickly or to sell before the price goes down, or a telemarketer will call using the same sort of pitch. Often the promoters will claim to have “inside” information about an impending development or to use an “infallible” combination of economic and stock market data to pick stocks. In reality, they may be company insiders or paid promoters who stand to gain by selling their shares after the stock price is “pumped” up by the buying frenzy they create. Once these fraudsters “dump” their shares and stop hyping the stock, the price typically falls, and investors lose their money.