REVERSE STOCK SPLITS REVIEWED
(IS THIS covertly A FRAUDULENT ACT)
****The last time I posted this warning, it was unsurprisingly deleted, as I believe it struck the nerves of some UPPER-level cons. (those who "MANAGE" Boiler room career criminals)
Read (Make copies) while you can because I suspect it will be deleted again to hide a likely hidden truth.
I will post it again NOW!
---In my research I may have stumbles across something that’s worth some concerns regarding this Reverse Stock Splits (R/S) monkey business.
It appears that R/S rips off shareholders while benefiting the pink sheeters that perform(s) it, using the following scenario.
Let’s say the price per Share of a given Pink Sheet company = .0001 (the most minimum share value necessary to be of any concern with the SEC)
Now say you purchased 1,000,000 chares (you spent $100/(.0001 per share) = 1,000,000 shares)
Your then “hope” (for example) the shares go to at least .0002 (where your shares will then be worth $200) and so on..
THAT pink sheet company “THEN” does a Reverse Stock Split on ya.
You ask questions regarding this split and your then “pampered” with =”OH DON’T WORRY, YOUR SHARE VALUE WONT CHANGE” and you’re assured this (BS) by the math being done for you to prove it, as follows;
Your current 1,000,000 shares ($100/[.0001/share]) having a total initial vested value of $100.
Let’s say the Split is 1 share for every 1,000 shares you now own.
This NOW means, (after doing the math [1000000/1000]), 1000 shares will be your NEW (resulting) total number of shares.
You PANIC at first, as you think about the loss of 999000 shares [1000000-1000] but sigh with relief as you’re reassured that even though the NEW share value is now 0.1 (10 cents) per share, your initially invested $100 didn’t change. Although your previously owned “1 million shares” were R/S’ed to a total of 1000 shares, you CAN verify that you still have your initial $100 investment after multiplying the new price per share (0.10) by the total number of shares you now own after the R/S. (1000)
Thus (1000000 * 0.0001) = (1000 * 0.1) = $100
And you’re concluded with “SEE? NO NEED TO BE ALARMED, YOUR TOTAL VESTED VALUE IS UNCHANGED” (which is true because it actually didn’t) –for the moment.
Now that you’ve been reassured, you walk away, but with one eyebrow up.
**-Now comes the fun part!! -The part they (the pink sheet companies) KNEW all along but didn’t tell YOU.
*After the split, thus Bringing .0001 per share to now .1 per share, Guess what? THAT company has (knowingly)“Created” their OWN opportunity to fall BACK TO .0001/Share again and take YOUR MONEY.
(This doesn’t necessarily MEAN that’s WHY they do it, but it sure as hell OPENS the opportunity FOR it))
Meaning, your current 1000 shares, worth $100 when 1000 was valued at .1/share, are NOW worth a NEW value of 0.1 cents (10 cents) !!! -because your 1000 shares are now valued at .0001/share,.
Thus, your initial $100 investment is now worth 10 cents!!
The Pink sheet companies keep “$99.90” of YOUR honest investment and leaves YOU with 10 cents of it.
And want to know what else? –THIS IS LEGAL!!!
Pink Sheets companies can do R/S whenever they feel a need to do so and as often as they please!
Does this refer to the company in questions? YOU DECIDE!
-AND as you can see, they make out like fat rats each time they do an R/S on YOUR money.
THEN later (After the smoke clears) they’ll do a PR (promo BS) and here comes MORE investors and AFTER the monies pour in from investors, hooked by some “BS” forward thinking comments / remarks, they do another R/S as defined above, making out like even Fatter Rats and on and on.
And those Con artists behind those Pink Sheet companies retire wealthy without ever producing anything better than a ball point pen used to write deposits slips for the monies they Bank-Roll from YOU.
Maintaining TRUTHS requires 'little to no effort' than Maintaining LIES.
