Replies to post #13381 on Alto Group Holdings Inc fka ALTO

[VIPR]

YES, absolutely. Why sell shares(which are free to the company)at .0021 when they can do a reverse split of lets say 10:1, which means for every 10 shares you own now you only have (1). If you had 1 million shares originally, after the reverse split you only have 100,000 now.....

Now, the stock multiplies in price by 10 taking it to .021, and then the company continues to dilute....but the co. is now getting 2 cents a share and sells just as many as before but is now getting (10) times what they were getting before for the same amount of shares.(BRILLIANT, if you are a shady CEO.....)

I would expect ALTO to announce a reverse split prior to collapsing entirely because after the reverse split share price normally plummets and the company will sell shares hand over fist at the higher price per share and will eventually end up at the same price as "before the split".....and at that point the stock NEVER recovers, especially with Klok at the helm of the ship. Alto actually is a perfect example of your post, as the outstanding shares were only 60million 9 months ago and now has outstanding share issuance north of 1/2 a billion. They have bought no equipment, not mined and basically issued & sold all those shares for no apparent reason other than to line their pockets with cash. They did state in OCT 2010 they were going to produce GOLD within 60 days....thats when the share price ran up to 4c+, then everyone realized he lied, nothing was produced and the stock has gone down ever since to 2/10 of (1) penny.

A share dilution scam happens when a company, typically traded in unregulated markets such as the OTC Bulletin Board and the Pink Sheets, repeatedly issues a massive amount of shares into the market for no reason, considerably devaluing share prices until they become almost worthless, causing huge losses to shareholders. Then, after share prices are at or near the minimum price a stock can trade and the share float has increased to an unsustainable level, those fraudulent companies tend to reverse split and continue repeating the same scheme