*AV* -- I don't know about this. I read everything on the thread and it does seem to be too good to be true. I have been following FAMH from the sidelines and could have gotten in early enough and conceivably made money on it but I did not. MEGW looks flakey but who knows these days. CYGS looks just as weird. But I agree with you, small floats have a tendency to wreak havoc. 250,000 shares in a float seems like anyone could control the float for little $$$$ and peel it off to the unsuspecting down the road. You can corner the market and squeeze the shorts real bad with a low float.
I call no one's character into question here by any stretch of the imagination. However, I could slowly accumulate 100,000 of these 250,000 shares and take advantage of the situation. Imagine what an unsrupulous person could do with blocks of stock. Heck, maybe I should buy as much as possible, ask for the certificates and do the short squeeze myself. After all, this has been done before on other stocks here and on other threads. Isn't this exactly how you do something like this?? Find a stock with a small float and a heavily shorted and then squeeze it till you get the propped up price you desire as the shorts are forced to cover.
BTW-this is slightly tongue and cheek. But on a more serious note, why even have a 250,000 share float. IF the stock is destined for greatness, the 90% insider shareholders could easily raise the capital to take it private again. It's only 250,000 shares with the profit potential equal to the purchase price today. A potential 100% gainer for them. Now that makes the hair on the back of my neck stand up. That is the 250,000 share question.
Andrew |
