MediaG3 (MDGC)

[harvard_mba]

I'm not invested in this stock but I have a friend who's invested here and was telling me about it. There are some things going on I don't quite understand.

Does anyone here track the number of outstanding shares against the stock price or know where to get that type of historical data? It seems to me that 1.2 billion shares is a little high for a company with such a small valuation. That's right up there in Toyota Motor's territory. If the share number goes up and the price goes down wouldn't it suggest dilution activities?

I don't know, I'm hoping for some guidance. I did a little reading on these topics and want to make sure I can determine whether it's safe before I jump in just because it's a penny stock. These are the 2 big fears I have.

http://en.wikipedia.org/wiki/Stock_dilution
Share dilution scams
Share dilution scam happens when a company, typically traded in unregulated markets such as the OTC Bulletin Board and the Pink Sheets, repeatedly issues a massive amount of shares into the market for no reason, considerably devaluing share prices until they become almost worthless, causing huge losses to shareholders. Then, after share prices are at or near the minimum price a stock can trade and the share float has increased to an unsustainable level, those fraudulent companies tend to reverse split and continue repeating the same scheme.

http://en.wikipedia.org/wiki/Pump_and_dump