As stated in my last post "I have money invested in another penny stock "
It closed today lower that SAFC and has been below .02 for more than 3 years.
The problem is SAFC is adding 5-15 mil shares to the OS each and every week and somehow that same number of shares is being dumped into the market.
You are right that many penny stocks dilute in this fashion--usually they take the time to pump it be before the insiders dump their shares. As you told me, SAFC learned from their last full fledged P&D. After they did the last one SAFC's volume dried up completely, with many days trading less than 50k shares. It isn't possible to dump shares with that kind of volume so this time instead of a full fledged P&D they are just dumping an increasing number of shares to compensate for the lower pps.
Is SAFC covering operating costs? Is SAFC covering convertable notes? Is SAFC covering past due bills? Or is SAFC lining the pockest of insiders who know what is coming to Pay off MFTH. All of these theories have been presented here by various posters. None is based on better information than the others. But the history of repeated P&D's (please see pumpsanddumos.com HOF) in the past year shows us SAFC's management is not above repeatedly dumping privately held shares on unsuspecting investors for personal gain
As to MFTH, in July, 2 1/2 months AFTER the ex-dividend date, they announced the the AS had been increased to 2 bil shares PRIOR to the ex-dividend date. The PPS was holding around .0013-.0015 prior to the 8-k about that increase. The publicly acknowledged OS was about 650 mil shares before that announcement as per Scotttrade, OTCmarkets.com, bloomberg and other sources. I-hub still had the OS listed as 550 mil.
Today, OTC has an os of 865 mil shares as of 6-30-13and I bet that is lower that what it really is.
AI
