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We have all been in a situation where we buy into a penny stock, enjoy a nice run only to see it killed by a company selling into a the run and then diluting it back way below your buy-in price. I know I have lost money many times in very sililar scenarios. Well now I am going to concentrate on penny stocks with no immediate plans of dilution. I know issuing stock is a necessary evil for all companies and is the only way for them to raise money, but I am trying to find companies that have finished their financing through stock.
The best way to find companies that have no plans to dilute is to research: -Look through PR's to see if they have announced completion of financing.
-Read 10k/qs to see if their share structure has changed from quarter to quarter, if they have issued shares in the past they will probably continue to do so.
-Check to see if they have any converitble debentures, this is a very risky way to finance because debentures can be converted and kill the stock.
-Call the company and ask to CEO or IR dept.
-Watch level 2, if you see one of the following MMs constantly on the ask then they are probably the firm hired by the company to issue their stock. WHen they move off the ask watch to see if they stay off its a good sign that the company is done issuing stock and big run may follow. Top Dilutors (retailers): ACAP, AGIS, BAMM, BMIC, CHIG, CLYP, FANC, FRAN, JIMK, MAYF, PERT, SACM, UCAP, VERT, VFIN. *Lately I've seen CLYP and VFIN very active with pennies, keep a special eye on them.
-If you are investing in a pink and cannot find any finacial statement and filings and cant get ahold of the company, then dont even think about buying the stock.
Heres a few companies that I know have finishing issuing stock.
ACMG - Called company and asked, float has not changed and no plan to increase O/S according to investor relations.
FSMH - CLYP has been on the ask for two weeks constantly, he finnally moved off the ask. Someone from IHUB called the company and verified that they were done issuing shares through CLYP and would release a PR. Could be huge.
IPRE - Announced in early may that they finished issuing stock and it ran 500%, then announced reverse split and stock went down a little but confirmed that there will be no diluation in PR. After the dust settles from the R/S, it could be a nice play.
If anyone knows of any others post them.
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"Drug To Be Launched In Nigeria Following NAFDAC Approval
As previously reported by Xechem International, Xechem Nigeria has submitted its Drug Master File (DMF) dossier with Nigeria's drug regulatory agency, the National Agency for Food and Drug Administration and Control (NAFDAC), seeking full registration for NICOSAN(TM). It is currently awaiting final word from that agency on its submission. Subject to the necessary approvals, Xechem has indicated that it would like to launch the drug in Nigeria by early July 2006, and shortly thereafter to embark on the clinical trials in the US hospitals for FDA approval through the Investigational New Drug (IND) Application for sale of the drug in the United States "
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