Yep, RFGI is one company with a very sleazy reputation, but what a nice trading vehicle! Nasdaq halted RFGI once before for cooking the book, I wouldn't be surprised if they halt them again for some reasons. No way I am going to take this dog home.
From Briefing:
When trading a company with weak fundamentals, the chances are much greater that the stock will be sideswiped by a negative newspaper or television report, which could send the shares spiraling 25% or more in the first minutes of trading. So, for those traders who are mulling over the decision to sell or hold, Briefing.com takes a closer look at Rushmore Financial Group.... First, the insurance and financial services company has failed to master the concept of turning a profit. The company has reported a profit from operations only once over the past six years. In its brief history as a publicly traded company, RFGI has announced the restatement of financial results and has seen its shares halted by the Nasdaq. The company attributed the restatements to an overstatement of revenues due to the failure to book adequate policy reserves for insurance policies co-insured by the company's life insurance subsidiary. One of the more interesting tidbits we found about Rushmore Financial Group is that it was an underwriter of its own IPO. The company came public in April, in an IPO priced at $5.50 a share. First Southwest Company
(which we have never heard of) served as lead-underwriter, while the company's Rushmore Securities unit served as co-manager of
the offering. For doing the deal, RFGI awarded First Southwest warrants to purchase 50,000 shares of common stock. |
