I didn't say that I think his business plan is a scam. I think he just found himself surrounded by others, e.g., family, promoters, etc., who have a history of taking the quick and easy buck, by diluting, dumping and r/s, over and over. My own opinion is that much of this is manipulative and violative of SEC regs, as well as fiduciary duty to shareholders.
But that's not my point in posting because the SEC and small shareholders don't have the resources to go after every case. That's why these guys can do this stuff over and over.
The only reasons they stop IMO are these
1) The heat - enough people get pissed enough - e.g., shareholders picketing saying "give us our non-diluted shares" that catches the eye of lawyers, politicians and the SEC. Unlikely to happen I admit.
2) See my prior post - Convince him that he can make more money aligning with and getting the trust of a strong shareholder base.
You ask -"how?"
I say, "show me." Cut the float. cut the o/s. Show us a business plan that says - only minor dilution at this point.
What does that mean?
He has to
1)cancel some of the freebie and cheapie shares issued to insiders, including to him and family
2)buy up shares from the float, a bargain now, especially if he and associates have been selling at higher prices
3)show how they get to cash flow positive - what will it cost and how it will be paid.
Do that and the stock is a multi-bagger. |
