A fellow investor just made me aware of an interesting bit of logic and an argument which counters the thesis of the bashers that RFMK is somehow a scam; thought I would share with the group if I can do the argument justice.
Basically, according to the investor, it makes no sense at all that RFMK could possibly be a scam because scam companies/stocks do everything they can to bilk investors out of their money as soon as possible and flee as quickly as possible in order to keep the authorities chasing shadows. Scamsters do not wait around telling investors the sad truth about poor company performance, etc. Yet look at the recently filed annual report from RFMK management, it clearly shows the TRUTH. It is hard to believe that there are any falsities in the annual report because most of the figures are just not that great, in fact most of the numbers show fairly poor performance; $39k in sales, over $1M in losses, etc. Yet somehow the bashers are using these poor numbers in the report to underline their ongoing thesis that RFMK is somehow a scam pump and dump dilution stock. It does not make any sense.
If RFMK were a scam, then would not the scamsters simply dilute the O/S themselves and flee immediately? If they were going to stick around after an entire year of dilution, why would they make an annual report public showing everything? If they wanted to stick around, file an annual report in hopes to drum up more interest in the stock so they could scam even more money from investors then why would they not just simply lie on the annual report and fudge the numbers so the market would go bananas for the stock and they would be banking millions from illicit stock sales of newly issued free trading shares? Instead of struggling month after month with a low PPS in sub penny and dealing with a long term funder like Ironridge, they could have just diluted the 800M shares themselves, sold at near .002 to make about $1.6M and then fraudulently shown $1.6M in sales and revenues on the balance sheet in the annual report which would have made the market amazed and likely the stock shooting up, not to mention the money raised could have already been in their offshore bank accounts.
The bashers arguments about RFMK somehow being a scam make no sense at all. It is quite apparent that RFMK management is putting in the hard miles here and now with struggling with funding and a low PPS, properly filing annual reports with the correct and truthful facts and figures and slowly doing what is needed to get a micro cap start up and running on its own two feet. Nothing about what RFMK management has done in the last 12 months has in any way shown any indication that RFMK is some sort of dilution scam, quite the contrary, the company has done everything one would think would be done for an entity struggling to build a REAL company. How do the bashers explain this? Look at previous dilution scams in history, there are many, most if not all of them show growing revenues and sales, no losses, basically just phony numbers of the financials so the stock price goes parabolic and then out of the blue the executives have fled and there is no word from management and the SEC comes in and halts trading, etc, because it is shown that the executives had been lying the entire time about financials. The scamsters seek to trick investors by fraudulently submitting bogus trumped up financials so as to pump the stock up so they can dump all their free trading shares into the market and have a big pay day then they dissappear. Why would scamsters allow the PPS of their stock fall and fall and fall for months and years while they bring in large long term institutional funders, file financials which show the company struggling financially but still just getting through and using most of the funding to get all of the debt of the company paid off in order to move the business plan forward??!! It makes no sense! Scamsters would not do that! LOL
It is quite apparent that RFMK executives are REAL principles executing a REAL business to grow a REAL company with a REAL product. The bashers can say what they wish about the company's performance, that is fair game, however they really no longer have any leg to stand on as far as calling the company a scam. That thesis makes no sense and does not fit in with what we have seen the company doing over the past year. Hopefully this rant does the investors original argument justice. All just my opinions, of course.
Do or do not, there is no try.
$RFMK!
