Megatech Corp (MGTC)

[LouisDesyjr]

What is going on?

I came upon this company from a posting on seekingalpha.com about a book on unlisted stocks.

1: The company is still and in operation.

2: The state reports are current, but there was an interruption a few years ago when they let them lapse for a while.

3: The latest reports I can find so far are from 2004.

4: The stock appears to be still trading under this symbol.

I am trying to see about getting a recent set of financial statements.

I think the problem is that a majority of the shares are held by insiders and they appear to have nothing built up over the years;i.e. most of the earnings may have been paid out. If that is the case, with no dividend and no equity built up, the stock may have little value since buying the remaining shares would give one less than 50% of the votes and no control to change anything beyond how they are running now.

The insiders, if they were thinking a bit more, would make changes to give people a reason to buy the shares and then could sell off their shares for more than what ever they are getting out of the company now, and be taxed at a capital gains rate instead of income tax rates.


Louis J. Desy Jr.