Inergetics Inc (fka NRTI)

[Crusen]

Please explain why it is junk?

Sure. They have a huge problem with this Prepayment event. It was a crap deal for shareholders which demonstrates management is either grossly incompetent, or more likely they just don't care about shareholders.

Since they allowed the Prepayment Event to be triggered when the share price fell below the "Floor Price" of $0.031, they then had 10 days to repay the balance under the terms of the agreement, which ended up being a little over $1.5 Million.

The notice on EDGAR:

https://www.sec.gov/Archives/edgar/data/72170/000114420414057151/v389744_8k.htm

They did not think they would be able to repay the note, and since we have not seen any PRs announcing the avoidance of this deadly event, I am assuming it was not repayed. Which then allows the debt holder to sell as many shares of nrti as needed to repay it. So, being generous and figuring about a $0.02 price per share, that ends up being something like 76 million shares.

Or about 80% of shares currently outstanding. Which would qualify as "massive dilution." Also, I would encourage reading and understanding of their last S-1/a for any shareholders. It is a separate agreement for more massive dilution: http://ih.advfn.com/p.php?pid=nmona&article=63564298

Painting the tape is an illegal and manipulative trading practice defined here:
"Painting the tape is the illegal practice of making a sale for the explicit purpose of changing the stock price. A fund manager might, for example, buy 100 shares of a stock at an unusually high price right before the market closes at the end of the month. Then he can report that his entire long position in that stock is worth that price. Brokers have even more control over the tape. If they have two orders they can buy the stock from one customer at one price then immediately sell it to another customer at a different price."----http://www.trade-ideasdotcomglossary/paint-the-tape/

It is a practice which can get a stock suspended by the SEC. Today was a particularly egregious example. The ask was not that high. It was manipulated. Not by MMs, but by company insiders.