Replies to post #33779 on DD Support Board and Research Team

[DragonBear]

What I expect is for the SEC

I doubt it'll play out that way. The only case in which it might is if KMAG really does have a thriving business. But if it doesn't, chances are the SEC will eventually bring suit, and Reid will get disgorgement, fines, and a penny stock ban.

Presumably once cited for fraud, the CEO can no longer trade his stock, even after the SEC concludes its fines etc? That seems only logical.

My working model of his "business" has him pulling in $60K-$100K per yr in royalties. Up to now he has supplemented his income, and guaranteed his $200K/yr income by selling or dumping stock onto the market. Dunno if that qualifies as a "thriving business" or not with the SEC. LOL

It's quite possible with all the share issuances in 2011 & 2012 he could have dumped $200K-$300K worth of stock into the market. Pick some SEC multiplier for the fine. No doubt the SEC can dis-engorge or make things financially painful, but no mug shot to deter the cult. Maybe one of the cult will even have coffee with Reid. Of course whoever it is will probably have to pick up the tab. ;)

The cult is in recursive mode today, citing the post suspension PR that the company is going to issue 2 yrs worth of audited financials and a Form 10. As if Reid has a choice in the matter.

The big buy day ends with volume of 2M, 6 transactions, and the PPS right where it started the session. Gee, that's a surprise.