PHI Group Inc (PHIL)

[wiltonweather]

Be careful about buying too many shares. About 3 years ago, I purchased $60K worth of shares in a penny stock(Not a smart move), and soon discovered that I had a controlling interest in the company, since I held more than 5% of the O/S. At the time, I had Scottrade as my brokerage firm. They put a lock on the stock, prohibiting me from selling it for 90 days. I also had to fill out some type of disclosure form. The CEO of the company, which I don't even remember the name of, proceeded to heavily dilute the shares & then did several reverse splits. Despite the dilution & my no longer owning 5%, Scottrade refused to unfreeze my account. The bottom line is that I lost my entire investment in the company, as when the 90 days were up, there had been so much dilution & R/S's that my stock was worthless. I'm not saying that it could be a potential issue here, but with a huge buyback by Henry, it could be. Scottrade is now TD Ameritrade, so perhaps things would have been different had I not been with S.T., but who knows. It was just a very hard lesson to learn.