I THINK this is what you want,
By: Dmuny () | IP logged
1/27/2006 2:23:37 PM
rumors abound for GZFX MONSTER NEWS ON MONDAY....
Sorry Bomber, I REALLY like you, but I must comment on GZFX...please no hard feelings, but I am doing this for the sake of the new traders that need to know the risks. (like someone did for me as a newbie)
This is NOT a good "stock", however time will tell if its a good company. I am NOT saying this is not a good trade, but there are ENORMOUS risks, as long as you know this, you'll be fine.
Im all about ground floor opportunities, but when I spent a day looking into this company, I could not get past all the red flags. Here are just a few major ones.
- The Transfer Agent will NOT give out outstanding share numbers, you must contact the company. I have a problem with this since CEO's are inclined to lie. (not saying Flemming does, just in general).
- Currently over 2 billion shares out. Wall street and broker dealers will not take any start-up company serious that has hundreds of millions let alone billions out, this means a enormous reverse split would have to take place to suck up all the gains.
- The company that loaned them money has a convertible note to convert Billions of more shares at any given time (there is NO time frame). Whenever a company sells their shareholders soul for $$, it shows that management is not "market wise". Yes, you need capitol, but their are MANY ways to get it without selling billions of shares. (Trading for assets is okay, but not selling out) Another note on this is that these shares will be in addition to the shares already out.
- The fact that they had to sell so many shares for capitol means the investment firm saw them as EXTREMELY high risk. These type of guys (and gals), known as Venture Capitalist firms, are VERY good at forward looking of a company, and picking winners, yet they loose everything 70% of the time, and "win" rarely more than 10%-20% of the time. We can only hope to do as well.
- This companies stock has traded hundreds of billions of shares over the last couple months with loads of pumps, yet the stock has done very little. Another red flag that says there may, I said may, be some major dilution going on that is not reported. (up until this note was executed the Transfer agent freely gave share info).
Okay, now the good news...lol. Bomberboy is right about one thing (he generally is...) if your going to buy, buy on the rumors, sell on the news....in other words get in soon.
I only brought this up for one reason, know the risks. Dont throw money in you cannot afford to tie up or loose.
Oh, and by the way,so you know where I stand, I did buy some a few months ago. I bought at around a half a cent, so it was a good buy.
But I am not a day trader... really, I am more of a long, I just thought there was some upside at a half a cent, luckily I was right.
I still think there "may" be an upside, but It will NOT see $1 without a major Reverse split....so dont dream of a 1000 bagger, sorry, its not going to happen. (I will be VERY suprised if it hits $.20. But hey .05 would be nice at this point)
Never has this type of company (with billions out at the get go), seen a 1000 bagger (in this case $5 PPS from the half cent) and its safe to say this one WILL NOT beat the odds. Good Companies with Billions of shares like Microsoft started with 25 Million shares out. Not to mention their unreal income. The chances are higher this will hit .001, than .25. Just know that. Yes its been higher before, but at the time their also was about 1/5 of the "known" shares outstanding.
Know the risks....and protect your gains!
D
