American Premium Water Corp. (HIPH)

[scottmba]

Nice work. I will add a couple things. Stock promos are typical 3rd party jobs. What they do is load up on shares, then dump some to a promoting company. Then the 3rd party dumps on the new buyers. Not atypical, and could, and I repeat could have occurred without his knowledge.

Second, he pretty much said that they would give shares to the new company. Why? They have no cash. Also, he pretty much said as much when he said that it would add value to shareholders.

Sometimes dilution is incredibly value-adding. Let's say you own 100% of a beat up old Ford, but now you own 50% of a Ferrari. Clearly your ownership stake is reduced, but is now worth substantially more.