I said that I thought this was a scam 2 months ago, and it looks like I have been proven right. Of course, figuring out that a pink sheet stock is a scam is not all that difficult. Sure, they still might get some money, do some digging, and find an economic diamond deposit. If that happens, I will be the first to congratulate the longs. I just think it is extremely unlikely.
Posted by: OriginalFred
Date: 12/4/2004 2:24:36 PM
This stock is a dilution machine scam in my opinion.
It is extremely unlikely that they will ever mine diamonds profitably, but even if they do, there would be so many shares at that point that the shares owned today would only share in a miniscule portion of the profit.
The share printing here has been astounding. In the last year, the share count has gone up something like 10 TIMES. That news about the diamond find SHOULD HAVE added significant value to the stock. It was OBVIOUS that the company sold millions of shares into that news.
Why do you think they remain on the pink sheets? It is so they can print huge quantities of shares without having to report it. Uninformed share holders are their best customers. Mining suckers’ pockets is much more profitable for insiders than mining diamonds.
Keep in mind that 90% of stocks on the OTC BB are scams, and about 98% of pink sheet stocks are scams. Your odds are TERRIBLE in the pennies. Professionals will not trade penny stocks because they know they are the sure way to the poor house.
Why do I bother to post this when I know I will be labeled a "basher" or a "naked short"? Because I have been reading this board for a while, and it obviously needs a dose of reality. I apologize for shattering the fantasy, but a dilution machine pink sheet stock is not going to make you rich!
