Hi Wayne,
This clause...
is going to $6 in 90 days
...invites two forms of regulatory scrutiny.
First, the phrase "is going" is almost certainly too promissory. It's one thing to say,
"we predict/estimate/believe that this stock will/may reach $X in the next 6/12/18 months,"
and yet another to say,
"this stock will hit $X within the next [time period]."
The term baseless would also probably arise.
There has to be a "reasonable basis" for price predictions. With the internet and biotech stocks, predictions for a $250 stock to hit $400, when the stock IPO'ed at $12, were not deemed "baseless" as the issues had already registered huge, outsized price appreciation.
But for a $.10/sh, $.25/sh or even $1.00/sh issue, setting a price target of, say $5.00/sh when the stock has been lingering at drill bit prices for years and trades an avg. of 1,000 sh/day would - on top of the promissory language - almost certainly be out of compliance with regulatory advertising, marketing, and sales practice guidelines.
LP. |
