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Monday, December 26, 2011 3:13:16 PM
no universal answer
depends on the state of incorporation. depends on how ballsy the CEO is. Depends on who owns voting control of shares.
I've seen IGNT give no notice to shareholders of a reverse split. Filed with the state, but gave no public notice. Luckily the CEO is in prison right now.
UNVC recently doubled Authorized shares with no notice.
IMGG recently voted to give the CEO, for free, preferred shares with 100-1 voting rights. that one definitely is a clue that he wants to do something that shareholders might not like
But in general-- if (A) there is a lot of debt, particlularly if the debt is a convertible (B) the stock has a low share price and (C)there are a lot of shares already outstanding, you are in danger of a reverse.
Name change??? Are they buying an unrelated business? Name change will probably be combined with BOTH a reverse split and a large issuance of shares to the "aquisition"
Promotions are flags. If a company is thin on cash and starts spending money on stock promotions and not marketing of product, that a flashing neon flag. Why are they promoting? Because they care about their shareholders? Or does an insider or 3rd party have stock to sell?
The stock you posted about has a ton of PR's. Very few of which talk about any successes. I like to see product marketing dwarfing stock promotion. I want to see product being marketed to customers, not stock to gamblers.
In general, if it is a penny stock being promoted, and it isn't running as a currently operating viable business, stay away. It isn't being promoted for YOUR benefit
depends on the state of incorporation. depends on how ballsy the CEO is. Depends on who owns voting control of shares.
I've seen IGNT give no notice to shareholders of a reverse split. Filed with the state, but gave no public notice. Luckily the CEO is in prison right now.
UNVC recently doubled Authorized shares with no notice.
IMGG recently voted to give the CEO, for free, preferred shares with 100-1 voting rights. that one definitely is a clue that he wants to do something that shareholders might not like
But in general-- if (A) there is a lot of debt, particlularly if the debt is a convertible (B) the stock has a low share price and (C)there are a lot of shares already outstanding, you are in danger of a reverse.
Name change??? Are they buying an unrelated business? Name change will probably be combined with BOTH a reverse split and a large issuance of shares to the "aquisition"
Promotions are flags. If a company is thin on cash and starts spending money on stock promotions and not marketing of product, that a flashing neon flag. Why are they promoting? Because they care about their shareholders? Or does an insider or 3rd party have stock to sell?
The stock you posted about has a ton of PR's. Very few of which talk about any successes. I like to see product marketing dwarfing stock promotion. I want to see product being marketed to customers, not stock to gamblers.
In general, if it is a penny stock being promoted, and it isn't running as a currently operating viable business, stay away. It isn't being promoted for YOUR benefit
#1). You have money. Other people want it. All of it!
#2). You want easy money. So does everybody else. They'll get it, too....yours! (and all of it!)
#3). You tell yourself you're smart. You won't lose your money. Fact: Other people are smarter,
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