Hi dingleberry11! I never trust a 200 day ma that is crashing downward to help make a golden cross. The most powerful cross almost always has a somewhat stable 200 day ma and a sharp upcurve with the 50 day.
That being said, I believe the true problem was this:
Asher Enterprises. In May, 2012 the Company entered into a Securities Purchase Agreement with an accredited investor. Asher Enterprises Inc. for the sale of a Convertible Promissory Note in the aggregate principal amount of $53,000. The proceeds of the note are to be used for general working capital purposes. The note bears interest at 8% per annum and matures February 4, 2013. The note is convertible into shares of common stock beginning 180 days from the date of the note at a conversion price of 61% of the average of the lowest three trading prices of Company common stock during the ten trading days of the OTCBB preceding the conversion date. The number of shares issuable upon conversion is proportionately adjusted to reflect any stock dividend, split or similar event.
Between May 8 and September 30, 2012, the investor advanced a further $67,500. $92,600 of the loan was converted to 25,715,010 shares of common stock, reducing the loan to $32,400 as of September 30, 2012.
Special Situation Fund One Note. On March 12, 2012 the Company arranged a debt swap under which an Asher Enterprises note for $40,000 was swapped with Special Situations Fund One with a payment of $21,490.90, for a total $61,490.90. The notes have the same characteristics as the Asher note described above.
In your dd always go to the last 10q to establish sharestructure as well as the convertible situation. If you see Asher enterprises, be suspicious of an upcoming crash.
Hope this helps! btw, chart looks like it may be reversing on this one:)
