Replies to post #204229 on Bebida Beverage Company (BBDA)

[Smallville]

From plastipunk:

A "Gagged" transfer agent is one which has been instructed by the company they are working for to not release information, such as the share structure. This is NOT a good situation. There is no legitimate reason for a company to gag their TA. It is almost always done to hide dilution. Without knowing the current number of outstanding shares, an investor has no idea if shares are being sold by the company. Concurrently, without knowing the number of authorized shares, the number of shares that can possibly be sold is not known either. Companies that practice this scam will often issue press releases, or other investor communication containing excuses for having the TA gagged. Unknowing investors will buy these up, and continue holding shares, or even buying more. We absolutely do not recommend touching a stock with a gagged TA, unless you are experienced with penny stocks, and it is purely a short term momentum play.

Look for a few PR's and 200m shares added to the float. If he can dump them at .0045 he raises $900,000 and shareholders get diluted.

[Garyst]

zooey, not a stupid question at all. A gagged TA (Transfer Agent) means that they are not allowed to give out the current share structure ie # of outstanding/authorized shares and is done at the request of the company. Hope this helps.

[Whiplash_Investor]

The Transfer Agent is hired by the company to handle its issuances and retirements of stock. To find out the current share structure, anyone can call the TA. A gagged TA is one that will answer no questions about the structure and refers you to ask those questions of the company.

TA can gag themselves because they don't want to answer questions or the company can gag them. Most of the time they are gagged by the company. Companies might gag the TA because they are merging with another company, they are cleaning up shares, they are issuing/ retiring shares, or other reasons.

In the penny's, the most frequent reason is to issue new shares and raise the AS. It hides what they are doing. This is generally a big red flag that signals dilution.

I don't think that BW is raising AS, but the odds are against me and others here who believe as I do.

Okie doke?