News Focus
News Focus
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Amievil

03/14/14 1:02 AM

#46463 RE: crazyjogger925 #46462

So what does the weather have to do with it?
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Morningstar52

03/14/14 1:34 AM

#46464 RE: crazyjogger925 #46462

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.