Seems appropriate ERF Wireless symbol now has a fifth letter D attached to it. The D should stand for dilution, deception, dirt-bag, or a few other choice words that would get this post deleted, but I digress. Well people we’re just coming off a R/S, 500:1. Nice huh! Nice way to cover up the .4 to .0047 dilution effect over the last year. Oh ya, the dividend promise also pretty much went up in smoke too, along with our money. Let me elaborate.
ERF wireless is spinning off a (and perhaps only) division. I believe this is their only source of income. A PR dated June 11, 2011 promises 100k shareholders warrants to purchase stock in this new spinoff. So doing some simple arithmetic, a June 11 100k shareholder now has 100,000 / 500 = 200 shares. Awww too bad, to get the 100k shareholder warrant you would have needed to own 100,000 * 500 = 50,000,000 shares. For those of you who couldn’t keep track of all those zeros yes that’s, 50 million shares!! Now let’s say you got a bargain on all those shares. Let us say you averaged, mmmm, .05 each. So 50,000,000 * .05 = 2,5000,000 dollars. Again for those of you who couldn’t keep track of all those zeros yes that’s 2.5 million dollars. Yep that’s right folks, for a mere 2.5 million dollars, you get a right to purchase more stock in one of their companies. MMMM, I wonder how many people actually invest 2.5 million dollars into a penny stock?
Well that’s present, how about some history. I was one of the lucky ones. I bought in @ .015 and sold for .005 after 60 days. Pretty much everyday I witnessed millions of shares being sold at the bid. PRs would be issued, board hopes would rise, and rallies begin, only to be squashed with even more shares dumped at the bid.
What about the future you ask, how does it look? Well let’s see, we have erased all the dilution of the passed year. Screwed the shareholders out of any claim to our new profitable spinoff. Share price is now a respectable $2.50. We erased most of the OS but the AS is still intact, so we have lots more shares to sell and at a much higher price, (yeah). Also, we will also settle this lawsuit anyway we can (arbitration) to make the stock more attractive (yeah again). So in sum, with a profitable company and high priced shell stock dilution machine I’d say the Cupley family financial status is looking pretty darn good, way to go!
As for the author, well I don’t consider myself a stock basher. Nor am I a foolish optimist hoping for that pot of gold. I just try to disseminate fact from fiction, reality from speculation. Most of all past performance carries the most weight in making an assessment of the future. The above is all JMO or assessment from what I have witnessed and perceive.
GLTA
Screw EFRW or they will screw YOU!!
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