CERP TRAIN DERAILING - DEATH SPIRAL! AS increase and RS approval coming!!
RED FLAG #1 Debt of over $22m and 200k cash since last 10Q in 9/2012, should be much more debt now and little to no cash, the company keeps the light bulbs running with shares.
RED FLAG #2 TOXIC FINANCING and CONVERSIONS. Just do some research on Magna, Hanover, JMJ, and Asher. Every stock these toxic lenders touch becomes trash! These toxic lenders don’t care about the company or the pps. They will run it to the ground and make handsome profits by receiving shares at a 25% discount and selling to unwary investors.
RED FLAG #3 DILUTION - OS increased over 10x in the last 6 months 282,431,674 as of 2/19/13 (WOW!!) and is likely increasing on a daily basis. CEO confirmed that his goal is survival of the company and this will come at the expense of current shareholders!
RED FLAG #4 The mother of all red flags in pennyland. AS increase to 2B and REVERSE SPLIT!! Happens every time, the death spiral! And no, this is not a reverse split to be relisted on NASDAQ, ZERO CHANCE. If that was the intent, they wouldn't have voluntarily delisted just to be relisted a few months later. The company is not kidding, they will make sure the vote pass in conjunction with the toxic financiers. Enough shares have been issued to the financiers to get the vote thru. They really have no choice, current OS is maxing out quickly and they need to pay the toxic financiers in shares. AS will max very soon, 2-3 months after the increase and then follow by the RS. RINSE and REPEAT! DEATH SPIRAL! That's what happens when you engage toxic financiers! Current shareholders will be diluted and wiped in the spiral.
RED FLAG #5 Company is never profitable and has a history of RS and then run it back down. 40-1 RS in 2010, and stock dropped from $5 to .01. History will repeat and current shareholders like those who bought in 2010 will be a total loss, 99% wiped!
I have been right on calling a run-down instead of a run-up in the recent weeks, all the way from .05s to now .02s and I will continue to be correct. AS and RS approval will be announced in the coming days via an 8k. PPS will take a huge dive as those that originally believed that there is no way retail investors will approve the proposals will finally see how wrong they have been! Yes, very naïve thinking all the way! Since when does retail investors really control whether or not a penny stock RS? Otherwise, there won’t be any RS in pennyland ever!
Short-term target, .01 in a week or two! Then low subpennies with more and more shares coming out. At lower PPS, company has to issue more shares to lenders, resulting in further dilution and maxing the AS quickly. But don’t worry, that is what the RS is for! Max OS and boom RS! Rinse and Repeat! CEO is right, he doesn’t like the pps lingering at 2 cents! RS will take care of that!
