Very true, and even an RS doesn't necessarily wipe you out. Most of these sub-penny stocks RS, keep their AS high and just start diluting again, so you do lose. But a legit company can pay their debt with shares then RS, lower their AS, emerge debt free, announce revenues and no debt and everyone makes out and the price rises after the RS. UATG could (they aren't going to, but could) do a 5 for 1 RS, lower their AS to 500 million, announce a great contract and with less than a 200 million OS take off and run to a dollar!