InvestorsHub Logo

Pennimon

07/09/10 11:39 AM

#5172 RE: asdgwest #5170

There is one incidence where court intervention worked out so that investors were able to recover money (if they were smart and took profits)and that stock is where a CEO used a finacier like an ATM and diluting the snot outta it similar to this one.

Stock was turned over to the financier who immediately dumped it on the market. Turned out the stock was supposed to be restricted for a period of time, and secondly the proper paperwork was not filled out and filed.

The net result was "chill" on trading which only served to put a "chill" on the CEO peforming an RS or further diluting it (only 300000 shares remained till AS maxed).

The stock still continue to trade and a huge engineered run was had allowing me to exit with a nice profit instead of huge loss.

For sshs I would not be surprised to see a JR pulled off here (usse and sstp) where a lot of the "assets" are transferred to a subsidiary who then gets their own trading symbol.

If you are that upset about things why not look into the company bylaws and see if there are any clauses that allow shareholders to inspect books. Then you would have a clearer idea of just what or how much of the prs are bs...