Replies to post #11539 on SMA Alliance, Inc. (SMAA)

[9754LB851]

Toxic debt for a stock is when a public company borrows money from a lender, after a certain amount of time, if the debt and interest is not paid in full.... the company issues shares to cover the loan.

A normal conversion rate is about 1/2 the Price Per Share at the end of the trading day the lender chooses to convert on ter the debt deadline has passed.
So an example would be if 'company xyz inc' chose to borrow 10,000 bucks from a toxic lender, and normally about a year later, they could not make payment, the lender receives $10,000 worth of shares @ .000045. ( if the PPS was .0001 at the end of the trading day)

That would be like 250,000,000 shares for that $10k. Then the lender calls his broker friend VFIN, VNDM, PUMA, or a choice of other non-retail MMs(market makers) and hires them to sell these 250million shares. The MM will with relentless aggression, wipe out the bid, if no one is buying the shares on the ask.
Called Dilution from toxic notes, Cds or Promissory notes. Happens daily all over the market. Company that PR weekly are probable promoting to raise the PPS before the due date or more likely are bringing in unsuspecting buyers to buy these freshly created shares from thin air.

Her is an example of a company whose filings are reporting the loanS & the conversion dates.. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=117748389 this POS company is at least 240k in debt and recently added 750 million shares to the SS to cover these debts. Then comes the Diluting of the Float with shares from the printing press.



This is one reason why SMAA is a Gem, and

why some of us are happy with a small share structure of SMAA and

that they have no toxic debt. http://www.otcmarkets.com/stock/SMAA/filings

Honestly, I really wouldn't care if SMA Alliance took 5 years off, and spent it at the beach and worked the minimum: as they kept the Stock trading and the Share Structure untarnished.

But I truly believe the upcoming video games are the real deal with Apple & Android platforms, and amazon rewards.
These things take time to perfect, as well as new websites.
http://ih.advfn.com/p.php?pid=nmona&article=67685039

SMAA is a very tradable stock:-)

This of course is in my opinion of things.

The company and the stock - two separate things.

Hope that helps:-) good night Nunyabidness:-)

[Notapro]

Everyone is butt hurt today....happy Friday everyone!