Replies to post #67163 on MediaG3 (MDGC)

[Cassandra]

A business that establishes itself as a start up yields investors of that start up high returns.

I'm not sure what you are trying to say. Since up to 90% of start-ups fail, most investments in them do not make a high return -- they end up losing.

Legitimate start-ups are private companies that offer significant equity to the initial investors to take the high risk of failure. Investors could be venture capitalists or angels. Some start-ups also do private placements with individuals who are accredited investors. A comprehensive business plan and full transparency is required.

PK companies that call themselves development stage or start-ups are not even close to the same as the above. They reverse-merge into shells of failed public companies and raise money by selling shares on the open market, usually with little transparency and the use of stock promoters promising huge gains. Often, as with MediaG3, there really is no business at all. These companies go the PK route because they aren't solid enough to raise private funding.

Instead of giving start-up investors a significant portion of equity, PK companies do the exact OPPOSITE... they DILUTE the equity holdings of their early investors who buy the stock on the open market by selling more and more stock to fund whatever it is they claim to be doing. Investors in PK start-ups almost always lose money and if they make any, it is usually insignificant.

Articles on individuals investing in legitimate start-ups:

http://www.forbes.com/sites/martinzwilling/2012/09/21/how-to-invest-in-startups-to-balance-your-portfolio/

http://www.investopedia.com/financial-edge/0912/4-risks-of-investing-in-startups-and-ipos.aspx#axzz2KYxnMInU

[cyberbullymouse]

One big fat problem: MDGC is an obvious stock scam run by bloated, geriatric con men who are past their prime.

All this risk/reward talk is filler. It's 100% risk for investors, and occasional reward for the failed scammers.