Why does my pink current penny stock continue to d
Post# of 8579
"To make money (The company) on a pumped OTC [Market] [Stock], they have to have Losses not profits.
You cannot covert debt to free trading shares unless you post constant losses. That is why they lose more and more each quarter and keep the price dropping so only the company can sell shares at a profit but you all cannot.
There is no law saying they cannot add more shares and dilute and sell for less. Sure you lose money and as I have said many times, you Losing money is not illegal.
Dilution makes you lose money and adding shares to dilute is legal so there you have it.
All legal.
If the shares are $1.00 or $.0001 the company always makes money. And for a few at the company who sell the shares to make lots of money, 1000's of you have to lose money.
Keeping the stock slowly in decline makes it so no one will sell except for the company. When the shares are sold out, it’s over.
They know they can never sell 8 billion for $1 and raise $8,000,000,000 but they do know 1000s will spend $500 to $5000 no problem on shares that are $.01 or less, so to make at least $30 million they just have to sell more shares for less.
If they were a low-float, solid entity with 25,000,000 in the float at $.50 per share is $12,000,000. It’s the same being a diluted entity with 8,000,000,000 float at $.0015 is still $12,000,000
Which price do you think is easier to sell at? OTC investors want more for less, OTC pumped companies know this and are happy to accommodate.
The reason they chose dilution is, they know most will not buy a $.50 stock so it is easier to sell more people more shares for less cost.
Pumping a stock at $.002 will go to $.06 is a 30x gain, SURE it’s possible to have that happen but try and convince OTC investors the same percentage gain at $.50 will rise the same 30x to $15 per share. We know that won’t happen on the OTC
That is why almost all pumped OTC’s must dilute or they would have no shares to sell and they would only make some money on the initial pump then it would be over. The game is to keep going as long as people are buying the shares regardless of the price. To keep it going they add more shares.
The end product is to shut it down when the shares are gone, reverse merge, cancel all the old ticker shares, form a new ticker and do it all over again.
For every $.001 gain in share price over the current price, totals $100,000 on each 100,000,000 shares sold. When divided into a float with billions, that figure jumps to $1,000,000 per billion.
That is how this all works."
Source: Insert-tag-here
Sadly but true this is 90% of the OTC game.