Replies to post #49874 on Mike The Pike Productions Inc (MIKP)

[kermit42]

If you want to buy into a pink-sheet company as a real investment, the best approach is to contract with management for non-dilutable preferred shares. Over time, the common shareholders will be diluted and reverse splat out of existence.

The official purpose of listing on the pink sheets is to raise start up capital by selling shares. The ability to sell shares is the only reason any pinky CEO would go through the headache of bringing us on board; really, what other incentive could there be?

The practical reality is that too many will be sold for the company to ever give them the kind of value they need to attract real investors. So if the company does succeed, they have no choice but to reverse split to get the share structure under control. So even with real pink sheet companies (assuming they exist), the early adopters will lose (post-split stock price is always (always) lower than the equivalent pre-split stock price).

That's why people sometimes point out that the stock is not the company--the stock will run based on promos, not fundamentals, and the common stock will eventually be worthless even if the company succeeds.

[skyrocketinsight]

What people are trying to do is get in on the ground floor to make a huge amount of money or scare other investors so you can drag the price down and then make a huge amount of money.

That is probably why 95 percent of penny stocks go belly up.
MM's combined with naysayers and the like intentionally attempt to create doubt in someones mind to pry away their shares, so they can make their money. These kind of people are very good at what they do, but in my opinion do not think this type of thing is ethical.

The ones that really do well are the companies that grow very fast. There literally is no time for the MM's, naysayers and the like to put their evil grip on a stock.