Not only do many people get wiped out investing in FIBR, but it happens again and again, as the company refuses to die a dignified death, but keeps returning to suck in new victims.
Look at the posts from Raging Bull, and you'll see many names who weren't posting a year ago, who have now suffered huge losses.
LoveMyKids had his entire account liquidated,
ragingbull.com
Katona lost 35,000 shares from his margin account.
ragingbull.com
MKhan had 49,000 shares wiped out, leaving him with $150K debt.
ragingbull.com
One investor who has been around for quite a while, Tbonenyc, had about 7,000 shares at the time the reverse split was announced. As the stock plunged, most of the investors who had held FIBR in a margin account were forced out of their positions. Tbonenyc apparently had much greater financial resources, and continued to bravely average down as the stock reverse-split and continued to plunge below 2/share. He finally accumulated 24,000 shares, and for a while he was proven right, as he was doubtless well in the black when the stock rebounded to trade in the high-20's, and the company actually fulfilled one long-standing promise: attaining a NASD listing. Unfortunately, Tbonenyc didn't sell when he had this chance, and this most recent crash to $5/share saw his account liquidated.
Yet the lessons learned by previous investors don't prevent others from "discovering" a beaten-down stock and thinking it might rebound yet again, and even some of the most injured parties haven't learned from their own losses. Tbonenyc (admittedly not a very sympathetic figure, as he routinely insults people, including this writer, and threatens others with physical violence), has repurchased a much smaller amount of the stock...
ragingbull.com
There are many small companies out there that have very bright futures, without the baggage of years of broken promises, dilution, and outright $90 million lies. Why then do people continue to believe in the Osicom story? The lure of easy money, and the inability to admit a mistake and walk away, create emotional obstacles for many investors. The SEC should act to protect investors from fraud, but it rarely takes any effective action.
Caveat emptor... |
