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Re: purlieu post# 3524

Tuesday, 01/23/2007 6:48:08 PM

Tuesday, January 23, 2007 6:48:08 PM

Post# of 143047
Obviously, the volume came from the company selling shares, restricted or not. The term restricted is used to qualify the stock as being saleable at a future date. What we are seing here is shares being added to the float. Now, you must understand that restricted shares are still class a common stock. The restriction must be up if they are selling...PERIOD!! They are lieing to us by trying to trick us into thinking the restricted shares don't effect us, or the float. It does add to the float. In order to bring the share count into line, the company will have to do a reverse split, no other way around it. This stock will see .0001 soon I'm sure. Below is a little blurb from Investopedia:

Restricted shares means: Insider holdings that are under some other kind of sales restriction. Restricted stock must be traded in compliance with special SEC regulations.

Insiders are given restricted stock after merger and acquisition activity, underwriting activity, and affiliate ownership in order to prevent premature selling that might adversely affect the company. Restricted stock cannot be sold without registration with the SEC (under the Securities Act of 1933)or some other special exemption.