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Re: covingtoninvestor post# 129352

Wednesday, 11/28/2012 12:42:38 PM

Wednesday, November 28, 2012 12:42:38 PM

Post# of 232509
You have simply regurgitated all that has been said in a series of PR's

Actually it's unclear where this one was ever dreamed up from:

No dilution



From my cut&paste file in response to this repeating cut&paste post:

Authorized share count starts 2011 at 175M goes to 1B and retreats to 750M in 2012. 434M granted to "someone" in 2011 - can you say dilution? Reid gains control of 625M shares in 2012, and converts 140M shares - can you say more dilution.



If anything the PRs scream dilution. Where Reid had just set himself up with 625M more to start dumping, when the SEC suspended the stock. Really, there's no way you go from 175M authorized to 750M authorized, and can claim that is anything other than dilution. Not to mention if you look at the past PRs, the amount of issued stock adds up to 846M, which exceeds the authorized shares of 750M. The share structure is a mess.

were too aggressive as they booked up huge revenue numbers based on the purported value of future production and sales



My working hypothesis is the sales reported were the r-pac sales figures for product using Reid's patents. He just plugged in the numbers r-pac sent him, along with the royalty check. After all in no PR past 2010 when he admitted no manufacturing capability, was there an announcement of a outsourcing or KMAG manufacturing capability. You can't very well sell anything, if you can't produce it.

I can accept the risk of entrepenurial enterprise, cannot accept the risk of scrupulous inviduvals



The only apparent way to try to avoid it for penny stocks is to pick one reporting to a regulatory agency such as the SEC, or CSA, with fully audited figures. Avoid those who are a one man shop, where you have a CEO, and no evidence of any employees doing actual work. Also a doubling or more of the authorized share count with no verifiable company Capex spending, and the shares going to the CEO seems another red flag. Else one is left with timing pumps&dumps. GL in your future investing.

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