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Microcap & Penny Stocks : DGIV-A-HOLICS...FAMILY CHIT CHAT ONLY!!
DGIV 0.00Dec 5 4:00 PM EST
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To: ANALYST10 who wrote (15624)6/24/1998 8:37:00 PM
From: ANALYST10  Read Replies (2) of 50264
 
By the way, they can raise up to $1 million dollars at any time during a 12 month period and then another $1 million in the next 12 month period.

One of the tricks they use is to issue shares under 504 at a penny and give millions of free trading shares to the person. His cost a penny.

To disguise the sale price of these shares they will sell some other share prices to those "outside" the group at reasonable prices. So you may hear that the company raised for example $650,000 not knowing who paid a penny and who paid $1. You will just hear $650,000 for let's say 2 or 3 million shares and that doesn't tell the story and as a non reporting company they don't have to tell you anything. But if you could find out the basic info, you still could not tell who got what and there is no way to find out even when they are reported in the financial statements, because they are never broken down.

They can also pay a promoter with 504 stock and say he performed services for the company and in exchange for the debt the promoter has forgiven his monies owed in exchange for a "number" of shares of stock. Which basically means, no money changes hands, the float is diluted, the company receives no money and so on and so on and so on. Its an ugly business.

That is why legitimate businesses put together business plans, take them to underwriters who evaluate the plans and find a home for the company if its worthy. And believe me there is no shortage of houses looking for good deals. In these market conditions, they are bringing out companies in record numbers and can't get them out fast enough.
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