Grifco Inc (GFCI)

[jtomm]

Not so. The price will simply go down as the number of sellers increases and/or the number of buyers decreases.

And keep in mind that the company basically had a free ride for the first year because of the supposed imminent financials. There was no reason for a long-term investor to sell. Just the contrary. The story only sounded better and better, and once financials came then the company would receive its true valuation from the market. All the more reason to buy. If they believe the story, most people will never sell. They'll hold it to zero. In that case, it's still the promoters doing the majority of selling, and the price simply goes down because there are less and less buyers competing on the bid.

No, it can't go on forever. But if it's a scam, it's already gone on for a year.

Think of the economics of a scam as being sort of like an oil well. In year one it produces about as much as it's going to, and after that it goes into decline until it eventually stops producing.

As time goes buy, even if the shares go to 5 cents it's still good money for all the shares you can sell.

The point is that there's a lot of money to be made in running a pink sheet scam.