InvestorsHub Logo
icon url

diannedawn

05/02/14 8:51 AM

#51046 RE: MiamiGent #49546

The real shame of this is that many got in on the repeatedly misstated O/S:

I COULDN'T AGREE MORE!!!

Many are questioning the O/S of ~999M... There is no O/S of 999M- that's the float.
Since the restricted shares are held up for 12-18 months the ideology behind this is... there is no ideology when speaking of the O/S or the float- they are what they are. You can cite the restricted shares in the same breath you note the O/S but you cannot call what is the float the O/S without being wrong and misleading, albeit unintentionally. We cannot fashion our own lexicon here. There are established terms to describe things like share structure. There is no such thing as a truncated O/S or an abridged O/S- but there is a dictionary, lol.

Especially since it's not even TRUE that those shares are "held up for 12-18 months"!
Yet it remains in the iBox...Where it resides with other inaccurate statements!Hhmmm...
There has been denial of the real OS and of the dilution occurring since way back in March.
I've tried repeatedly (unsuccessfully, of course) to correct the information, point out the dilution occurring, and the amount of convertible debt out there.
(among other things)

I document virtually everything I say with links; yet I'm still shouted down.

I kind of had to laugh at the hue and cry over FROZ's own little "flash crash" yesterday;
which was brought on by the misinterpretation/misstatement of the meaning of a filing!LOL!!!

No one has seemed to mind FROZ's push to .03 on the misinterpretation and misstatements of filings!
HuH...I wonder why that is???

Sooner or later everything will be drug into the light by the filings...
I CAN'T WAIT!!!


Meanwhile...doesn't this sound familiar?
http://www.sec.gov/investor/pubs/microcapstock.htm
Microcap Stock: A Guide for Investors
"What's So Important About Public Information?

Many of the microcap companies that don't file reports with the SEC are legitimate businesses with real products or services. Even in the absence of fraud, a lack of public information about a company can make investing in its stock more risky because the prices that are quoted for the stock are less likely to accurately reflect the risks and opportunities associated with the company and its business. In addition, stocks of such companies may trade only in small volumes.

Of potentially greater concern is that the lack of reliable, readily available information about some microcap companies can open the door to fraud. It's easier for fraudsters to manipulate a stock when there's little or no information available about the company.

Fraud involving microcap stocks often depends on spreading false information. Here's how some fraudsters carry out their scams:
•Email Spam Fraudsters distribute junk e-mail or "spam" over the Internet to spread false information quickly and cheaply about a microcap company to thousands of potential investors. Spam allows the unscrupulous to target many more potential investors than cold calling or mass mailing.

•Internet Fraud Fraudsters often use aliases on Internet bulletin boards and chat rooms to hide their identities and post messages urging investors to buy stock in microcap companies based on supposedly "inside" information about impending developments at the companies. For more information about Internet fraud and on-line investing, read Internet Fraud and Tips for Online Investing: What You Need to Know About Trading in Fast-Moving Markets.

•Paid Promoters Some microcap companies pay stock promoters to recommend or "tout" the microcap stock in supposedly independent and unbiased investment newsletters, research reports, or radio and television shows. Paid promoters are generally behind the unsolicited "junk" faxes, e-mail messages, or high-end glossy mailers you may receive, touting a microcap company. The federal securities laws require the publications to disclose who paid them for the promotion, the amount, and the type of payment. But many fraudsters fail to do so and mislead investors into believing they are receiving independent advice.

•"Boiler Rooms" and Cold Calling Dishonest brokers set up "boiler rooms" where a small army of high-pressure salespeople use banks of telephones to make cold calls to as many potential investors as possible. These strangers hound investors to buy "house stocks" - stocks that the firm buys or sells as a market maker or has in its inventory. To learn more about cold calling, read Cold Calling - Know Your Rights.

•Questionable Press Releases Fraudsters often issue press releases that contain exaggerations or lies about the microcap company's sales, acquisitions, revenue projections, or new products or services. These fraudulent press releases are then disseminated through legitimate financial news portals on the Internet.

Microcap fraud schemes can take a variety of forms. Here's a description of the most common schemes:

The Classic "Pump and Dump" Scheme It's common to see messages posted on the Internet that urge readers to buy a stock quickly or to sell before the price goes down, or a telemarketer will call using the same sort of pitch. Often the promoters will claim to have "inside" information about an impending development or to use an "infallible" combination of economic and stock market data to pick stocks. In reality, they may be company insiders or paid promoters who stand to gain by selling their shares after the stock price is pumped up by the buying interest they create. Once these fraudsters sell their shares and stop hyping the stock, the price typically falls, and investors lose money"

Or this:



here is some more warning information from the SEC, pertaining to reverse mergers...
http://www.sec.gov/investor/alerts/reversemergers.pdf

"Take Precautions: Look for Reliable Information
Investors should be careful when considering investing in the stocks of reverse merger companies and should make sure that they have accurate and up-to-date in- formation about a company before investing.

Research the Company: Always research a company before buying its stock, particularly if the company has been subject to a trading suspension or has been delisted from an exchange. Evaluate the company’s finances, organization, and business prospects. This type of information often is included in filings that a company makes with the SEC.

Review the Company’s SEC Filings: This information is free and can be found on the Commission’s EDGAR filing system.
Be Aware of Companies that do not File Reports with the SEC: Some companies are not required to file reports with the SEC. These are known as “non-reporting” companies. Be aware of the risks of trading the stock of such companies, as there may not be current and accurate information that would allow you to make an informed investment decision. Because an operating company that is not required to file reports with the SEC is, by definition, a non-reporting company, historical information about that company is likely to be limited. Further, information about a public reporting shell company that a non-reporting operating company merges into, in a reverse merger, would not be relevant to the operating company.

Be Skeptical: Whenever someone gives you a “hot” tip, always ask what motivated them to do so. Make sure that you do your own research instead of relying on what somebody has told you. Keep in mind that information from online blogs, social networking sites, and even a company’s own website may be inaccurate and sometimes intentionally misleading"