InvestorsHub Logo
Followers 52
Posts 9842
Boards Moderated 0
Alias Born 09/14/2007

Re: Penny_Island post# 75081

Saturday, 02/04/2017 10:50:21 AM

Saturday, February 04, 2017 10:50:21 AM

Post# of 78243
I don’t own shares so take my advice for what it’s worth.

I’d advise selling as soon as possible. This company doesn’t seem to have a viable business plan, smart management, or cash reserves to stay in business.

Benny doesn’t seem to know how to run a business or manage money. Benny going quiet in turbulent times (or being obscure during slightly better times) means you cannot count on good information to make informed investment decisions.

The company is overvalued by virtue of a practical lower limit to the share price. The stock is likely to fall dramatically after the reverse split takes place. It’s very likely the share price bottoms out, again, fast.

Since the preferred shares do not (reverse)split and are convertible into common shares, after the reverse split, they will count as billions of common shares on a fully diluted basis, giving the company a unrealistically high valuation.

I don’t know if Benny will be able to sell any convertible debt after the reverse split, but any sold would be converted ASAP and the common sold into the market, as fast as possible. Because of the possible dilutive effects of the preferred shares, no qualified investor should touch the company.

I could be totally off basis here, as penny stock traders don’t always follow a logical course.

Edit
I also think it is a big red flag that the company is moving jurisdictions from Nevada to Florida. It's likely Benny wants to avoid being sued ( by board members), yet again, in Nevada, again. It may raise red flags with the judiscial system there and possibly stop the practice.

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.