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Microcap & Penny Stocks : Diamond Entertainment Corp (Previously DMEC) -- Ignore unavailable to you. Want to Upgrade?

To: TraderGreg who wrote (4403)	6/6/1999 4:32:00 PM
From: Richard L. Williams	Respond to of 6957

Greg-- Aha! Now we see the craftiness of the folks at Zulu Tech....they read the rules carefully, and made their move at the right time. Not that being a Z is any better than a "To"....but being last in the calendar may save them a few more days. A little ditty on scam stocks: Nothing in here applies to DMEC, that I can see. >>Weekly Article: Possible Warning Signs in Microcap Stocks. Investing in the world of microcap stocks is EXTREMELY risky. While it is very likely to make many times your money, it is possible to lose most or all of your investment. The key is to manage the risk. Here we give you some tips: The company recently did a Reg S or Reg D offering that is convertible into stock at a percentage of the stock price at the time of conversion. We call this type of offer floorless. If you invest in the company, you are looking for trouble. The company doesn't provide financial information to investors. The company recommends that you buy its stock. The company has almost no revenues and needs to issue common stocks for its daily operation, but the company claims to have a stock buy-back program. The company has negative cash flow and claims to have a stock buy-back program. The company has debts and claims to have a stock buy-back program. The company claims to have a stock buy-back program, but does not mention its outstanding shares in the press release. The company releases its earning report, but does not mention its earnings per share in the press release. The company issues misleading press releases. For example, a Chairman of a company had a stock option to purchase several million shares of its common stocks at a very low price compared to its market price and then claimed he bought the shares did not even mention if he bought the shares in the open market in the press release. The company claims that some investors buy the shares at a market pricewith 144 restriction in order to show investors have confidence in the company. Only fools will do that. They must have bought the shares at adecent discount of its market price! The company issues massive amounts of stock and options to insiders and their relatives. The company spends a significant amount of time and money promoting the stock. *The company has almost no revenues but pays its top executives severalhundred thousand dollars per year. -----------------------------------------------------------------------