I'm not making this thread to say it's a good investment. I am making this thread to warn you all about this stock. It is a black hole for money and it's only a matter of time before it reverse splits, AGAIN.
I wrote about it a while back in my watchlist/trade journal thread here, and thought I should bring this POS to everyone's attention as a perfect example of why penny stocks, specifically sub penny stocks have such a bad rap. If you are new to trading, it would be wise to follow a stock like this just for educational purposes. Here's the cycle:
1. Stock makes it's debut and investors/traders buy the stock.
2. Company dillutes, and floods the market with shares, thus creating wayyy more supply than demand. This drives the price down into the triple zero cellar.
3. Stock goes to .0001 and no bid. Stays there for a while suckering newbie investors into buying at .0001, only to end up selling at the market and getting .00001 per share back. Those still holding will be taken to the cleaners when step 4 happens.
4. Stock does a 5000 to 1 (or whatever) reverse split. Share price raises to .07 but you only have a fraction of the shares you had prior to the R/S.
5. Sell orders and dilution flood the market with shares and drives the price back down.
R/S, ticker change, rinse and repeat, over and over. That's how they make their money and take yours away. Another good example is EVFN, previously EVFL.
Thank you for reading this and hopefully I saved a few new traders from losing money.
-Rob
CMGRD - Camelot Entertainment
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