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Microcap & Penny Stocks : Tonto and Janice Teach Investing -- Ignore unavailable to you. Want to Upgrade?

To: Josef Svejk who wrote (24)	3/18/1999 11:52:00 PM
From: Janice Shell	Read Replies (3) \| Respond to of 302

Yes indeed. In fact, any attempt on the part of the company to blame problems, current, past, or future, on any kind of Evil Conspiracy should be considered sufficient reason to give that issue a wide berth. Also watch out for: --mysteriously increasing share count: oops, last month we had 15 million out, this month 18 million, but never mind...must be the fault of the naked shorts. Uh-huh. Sure it is. --excessive amount of stock outstanding, especially when approaching total authorized. Reverse Split City: you'll be screwed. --convertible anythings: frequently an invitation to the kind of arbitrage plays that ordinary shareholders really won't care for. --is your CEO willing to flog 504 stock waaaayyyyyy below market price? Not a good sign. Remember, the cap on a 504 placement is a million bucks a year: you can issue as many shares as you like for that amount. In sum: be sure you have a good idea how your company plans to finance its operations and activities. Most bbs are desperately short of cash, or they wouldn't be bbs.