MEME - Gather 'round everyone, because this is a classic penny stock hype in the making (go ahead and flame me, Richard, this is just too funny to pass up).
MEME couldn't make any money with "wireless cable TV" so they announce they are ready to give "wireless Internet" a shot. Stock had fallen from $2.50 to .16 so what do they have to lose? They only have $26,000 in cash so every little bit helps.
Yesterday the stock opens at .09 and runs to the .20's. Around 2PM this new thread appears full of rah-rah and LOTS!!!!! of exclamation points. Small float, short squeeze, yada, yada, yada. MEME closes at 15/16 and the hypesters hit the SI threads in force.
Today it will probably gap up and run some more. It might even run until Friday. Then BOOM! The pumpers will become the dumpers and leave a lot of small shareholders holding their shares and wondering when the price will recover to their purchase price.
For MEME longs: how will MEME build out this system with $26K in the bank and only $200K total assets? Answer: there are 6 million shares outstanding and 100, yes 100 million authorized. They will have to use discount convertible financing to raise any capital because no bank will touch them. That will dilute the hell out of current shareholders. Look at GOTK.
Sounds neat, Internet with no phones. But their gizmo will need a transmitter in whatever frequency range they choose, then they need receivers which can blanket their customer area to make it work (assuming that buildings, other signals, etc. don't cause too much interference). Just ask ARTT how much it costs to build out 38Ghz commercial service. Many millions, not $26K.
I could go on, but you all get the point. Don't fall for these scams unless you are in on the ground floor. MEME insiders are worth $5 million more today than they were yesterday. They will start cashing in out of the pockets of new shareholders - the people they are spamming on SI to jump on the train.
For MEME longs - if I am wrong, feel free to cheer and gloat. But this has a really bad aroma. |
