Look on the boomerang for investor presentation. It's on there somewhere as a powerpoint presentation. Watch the preferred stock presentation. Preferred Series C stock, when traded on the market 1 year after purchase, is traded 1 to 1 for common stock. Now who in their right mind would buy a share of preferred for 50 cents to trade it for a share of common for .0001 cents?
The "vision" is, 1 million downloads = stock value $10. His goal to achieve that is the end of 2009.
Documentation on classified information might be pretty hard to acquire, don't you agree? I don't hear Doc Brown or Morales stating any real information to the people who call them to provide then with genuine information, do you?
Why would it discourage future investments? It would just make the stock not a penny stock anymore, and a normal stock. H needs $1 million to invest into R&D, website redesigns, commissions, and whatnot, and getting that money from a stock that sells at .0001 isn't going to happen. His main investment market is people who hold a lot of capital, who are willing to buy 50,000 blocks of preferred series C stocks for $25,000. Not by selling his Common at .0001
As far as what the market states, a RS would be a neutral move, especially if it was along the lines of a 7000/1 split, which would increase the share value to 70 cents a share. Now that would probably scare off people who invest majority of their money into penny stocks, but would open up the market to people who invest into regular stocks, don't you agree?
