Replies to post #2716 on WindStream Technologies Inc. (fka WSTI)

[Toxic Avenger]

If you're basing your assumption that some recover on this, "An analysis of 80 public filings shows that a company that does a deal with Magna sees its shares plummet 55 percent over the next year, on average. Most never recover and wind up trading for thousandths of a penny or less. Sason says that’s not Magna’s fault.", I wouldn't.

I've never seen one recover, and if they do, it's likely to be less than 1 in 100. Of course WSTI fell faster than most, losing 99.99% in a year.

[h2omd0]

Quote ((The financing technique is legal as long as the debts that are being paid off are real and the financier doesn’t kick any of the money from the stock sale back to the company, according to Mark Lefkowitz, another penny-stock financier who pleaded guilty in 2012 to breaking those rules. “The bottom line is, it’s supposed to be used for bona fide conversions of debt to equity,”))