Replies to post #4744 on Star Nutrition Inc. (fka STAU)

[Pacha78]

70% of O/S are own by the 3 founders and those shares are restricted (each owner can sell only 1% per quarter)

The above statement and a R/S doesn't make sense. A R/S would destroy this stock and investors would not come back for a long time. I am certain the founders are aware of this and with minimal volume they could not sell any shares for a while.

Also it makes little sense to pre-announce news and then R/S. Why pre-announce bad news? Investors will exit as soon as they find out. I doubt the company will do this.

I'm assuming once cash flow improves the company intends on buying back shares, that seems like the only logical solution here.

[sespears]

You are correct on a penny, it's usually not too good. Larger stocks like AIG and Etrade have done well after a R/S, just to name a few.