Here's a giant red flag on Futuretrak's legitimacy:
quicken.excite.com
Let's parse this announcement. Futuretrak's holding company, World Vision Holding, Inc., (WVIS) currently is a $3 bulletin board stock, very thinly traded (a whole 200 shares traded today and none yesterday), that has, according to Stockmaster, been in the range of $2.50 to $5 over the past year. WVIS bought 80% of Sun Holding for 2,981,300 shares of its stock. Sun Holding was described as worth $4,069,946 in the release, and losing money. Therefore, to equalize value, WVIS stock was priced in this transaction at $1.09 per share -- even though it was on the market to outsiders at somewhere between $2.50 and $5 per share.
In other words, owners of Sun Holdings got Futuretrak's parent corporation for a wonderfully discounted price of $1.09 instead of the "market" price of somewhere between $2.50 to $5 (actually, whatever the price was on the date of the transaction, but this teeny stock isn't that closely tracked by the data services). Why would WVIS give away stock at this low price? Isn't that breaching its fiduciary duty to its stockholders? Well, not if WVIS is simply in the business of unloading worthless stock to naive investors at a tremendous markup, and owners of Sun Holdings wanted in on the scheme.
I remember SirAlexx posting that he got pre-IPO Futuretrak stock for $1 a share. (It seems to be the insider's price.) Fortunately for him, he's already unloaded some of it for well over $2 a share. He's pumping, and now he's dumping.
Buyer beware. |
