Replies to post #186539 on Winning Brands Corporation (WNBD)

[doogdilinger]

Haha, I certainly understand why most companies or funders fund promo initiatives lol, and unfortunately it's usually for the purpose for them to line their pockets.

That's not even remotely true...most co's/funders implement awareness campaigns to drive organic interest/liquidity into their stocks for the following 5 reasons:

1. To secure next tiers of funding at share prices that strengthen the co's ongoing growth initiatives

2. To protect shareholder value

3. To limit the rate of dilution

4. To obtain secondary funding intruments which are based on daily/weekly/monthly average dollar volume and share prices

5. To fuel organic interest amongst the market masses so they know they even exist

Funders who hire promoters to help them liquidate stock do so to ensure that they get a return on their original investment at higher share prices than the original discounts they were given.

Co's hire promoters to ensure that funders aren't liquidating their discounted stock into a market that can't absorb them so they can protect shareholder value, limit dilution and maintain a decent share structure by raising funds at healthy pps levels while they utilize the financing they're receiving to deliver a measurable increase in their tangible results on a Q over Q and YOY basis.

There's a wide variety of reasons/dynamics involved as to why penny co's fall all the way down the pos-land rat hole to no bid oblivion...but it's never the fault of promoters who have absolutely zero to do with how penny company executives implement their biz plans and manage all their funding requirements.

There's nothing illegal about hiring promoters...and the majority of penny co's always start out with the best of intentions of trying to grow their biz...but the main reason only 10% ever succeed at becoming a viable entity is due to the decisions of management...and when talking about trying to do the right thing there's far more dynamics involved in running a public company than just knocking on doors and trying to sell products through grass roots efforts.

And if you're gonna talk about blowing smoke up the butts of the investment community and suggest that only some promo company would ever do such a thing you best review the hundreds of board memos, emails, ceo interviews and blogs...especially when talking about fine lines being maintained and seperation between integrity and BS haha