Premier Investment Properties, Inc (PIPI)

[jbsliverer]

Well like I stated, the "reduction" of A/S can be increased at any time and now can have more options for different kinds of toxic notes and debt burdens as well available to the "management" (another very loose term). There also has been several examples where these pinks have reduced the AS in the area of ANWM (50%, 65%, 75%) only to have the pps plummet down and selling by insiders, third parties, etc. to occur anyway. Also other pinks that did that were subsequently "Chilled" by the DTC.

Here we have the DTC has already done that, so what does it matter I guess for that part. But point is that it did nothing for the pps or the normal "investor" other than some short term MOMO and "fluff stuff" over the boards before the pps went south. And they were at least trading normally and not the erratic garbage behavior of the grey market like this "company".

I'll have to add that a RS might not be in such great odds as with reorganization for ANWM. The DTCC (and it's subsidiaries) are aggressively attacking the loopholes of reorganization and RS, so ANWM and their legal council will be finding even more resistance and walls to that goal. In fact a lot of new regulations, requirements, and costs are coming down the pike for these type of stocks.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=72296968

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=72286614

But in theory (doesn't seem to happen much in the dirty pink shells) the AS is for "management" to issue shares for funds and financing for the business and building real equity (IE: Public Company). For the overwhelming percentage of the pink market, that doesn't happen and just seems to end up being equivalent to shell money laundering or loan sharking.

Now most of us know that the reality is that the insiders, toxic or convertible note holders by hook or crook use every possible way to get their cut and their "investment" and not give a rats a$$ about the normal shareholder. And I suspect that is what is going on here somehow.

But even in the theory of why public companies are in fact public and getting public money from shares issued, it can be problematic for limitations of the AS. Of course the general attitude is that restricting the amount of AS will reduce the risk of more dilution and it creates the Weeeeeees around the boards. But several recent studies have found that it creates more problems and the toxicity and bad business behaviors just continue, in some instances become worse. For example a quote from the Harvard Law School and Forum on Corporate Governance and Financial Regulation;

"Thus, even though there are limitations on the managers’ power to issue stock, the paper shows that most of these limitations do not effectively restrict the managers’ power to issue stock and that managers can still take advantage of it to advance their own interests. Furthermore, the only restriction that can effectively prevent the managers from issuing substantial amounts of shares without receiving the shareholders’ approval— the ceiling set by the number of authorized shares— can distort managerial behavior. This limit on the power to issue stock may cause the managers to refrain from issuing stock for ordinary business purposes, such as equity-based financing and equity-based compensation, in order to retain their power."

The reality is that these reductions of AS (including any large percentage reductions) just don't seem to do anything for the average "investor" other than jazzing them up with some short term fluff. Trading (if ANWM wasn't in the grey cesspool) might be an option, but given they need to get all the ooze off first, may prove to be a long wait for any real abilities to succeed in the "trading".