Tubs, if your a novice penny investor this is how it works. These public companies sell discounted stock to "financiers" who dump it on us (for a profit). Most of these penny stocks never turn a profit but survive off our backs.
Chances are when a stock pops you'll soon hear a new financing deal was completed at a lower pps.
Some companies are more blantant that others. Take CBAI for instance. The started out with 40M shares and ran the printing press to 6.95 billion.
Be careful on drinking any kool-aid.
AWSR on the surface seems like a good play, but who knows how many shares will be be printed to fund salaries and operations?
"...On February 11, 2011 America West borrowed $2,000,000 through the issuance of a convertible promissory note. The note bears interest at 10% per annum and matured on March 15, 2011. At any time subsequent to fulfilling certain conditions, the creditor has the option to convert all or any portion of the unpaid balance of the note into shares of common stock at a conversion price equal to $1.00 per share..."
This is why AWSR is having a hard time taying above $1.00
