ScripsAmerica Inc. (SCRCQ)

[coolerheadsprevail]

If SCRC someday posts their reports and the reports don't show there has been massive lying going on then those who buy in at the current price are in for a great ride. Am I wrong?

For those shares purchased in the .02x levels, the speculative risk-reward is reasonably attractive regardless of whether SCRC ever puts out any filings. That's the nature of penny stocks. But those who bought the .03x shares likely felt the same way at the time, as did those who bought the .04x shares. If the sp ever goes to .01x, then we would rip the crown off the heads of the .02x shareholders, kick them off to the side of the curb, and pat the .01x shareholders on the back. That's why there exists the age-old warnings about falling knives.

But so far, it does look as if .02x may indeed be the floor and so those .02x shareholders are in great shape -- fundamentals or no fundamentals.

But of course, the other 95% of shareholders who bought between .05-1.05 just keep getting pushed further back in line, which is unfortunate, but is a testament to the dangers of simply buying and holding penny stocks -- especially penny stocks where they have been warned about illegal promotion.

In response to your specific question, I'm not convinced that the sp is where it is because the market is fearful of finding out that SCRC's numbers were fake. As I've stated previously, there is nothing in the public space that makes me believe that at this time.

But a re-statement of SCRC's financials IS a legitimate concern and a re-statement of SCRC's numbers can occur for 3 different reasons:

First, it could be because of fraudulent and false numbers, and if that were the case, once the 10K came out disclosing this, it would be game over. But again, I have no reason to believe this is the case and personally rank this as the least likely scenario.

Second, it could be because SCRC has not accounted for its intercompany relationships properly. SCRC has several such relationships so the impact is difficult to quantify -- but uncertainty equates to increased risk as the market loathes both uncertainty AND risk.

The third scenario would be if SCRC did not recognize revenues properly due to their definition/interpretation of an "approved order" vs when the product shipped. IMO, this scenario is virtually harmless as it has no impact on overall long-term revenues but simply pushes pieces of the revenue from one month into another month