posted
Here's my gut reaction. Was a pretty thinly traded stock back in April, probably a no bid x .0001 ask stock. The company had diluted it into oblivion, with 22Billion outstanding.
they did a ridiculous 1:500,000 R/S and the o/s was reduced to 44,000.
Probably anyone that owned pre-split had a few million shares at most, and so post-split that would be 2 shares per million pre-split. I saw someone say the bid was .50 after the split, so if you had even 20million pre split, it wasn't worth selling at .50 so there were pretty much no trades in the last almost 3 months.
Today someone decided to dump some shares, whether it was the company, a holder, or someone shorting it, we'll probably never know.
My guess is that the company is dumping, and based on hype from another board, people are gobbling up the shares thinking that it's a R/S screw up, and that's the only thing keeping it from crashing even further.
The one sure way to find out is to call the TA, and if the O/S count is still 44,000, then all bets are off and there are individuals who could have spend $5,000 today and basically bought the entire company, but if the float is suddenly 400,000+, then the shares traded today were company dump and traders flipping.
And even if the O/S is still 44K, the company could still start dumping at any point, but I'd be buying in the morning if I personally confirmed that the O/S is under 100K.
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posted
Just saw on IHUB that someone is claiming that MGWE is about to start a paid promotion where the pumpers, excuse me, promoters, got $200,000 cash. That led me to post this over there:
Something doesn't add up here. Can someone point out the flaw in my logic for me?
There are 44,000 share outstanding after the reverse split.
If someone truly paid $200,000 to "market" this stock, they would have to be expecting a good portion more than that in gains, correct?
Post R/S it's physically impossible for anyone to own 200,000 shares, so how could anyone make enough to cover that kind of expense, unless they are 1 of two things. 1) The company is planning to dump more than $200,000 of stock to people like us, or 2) there is some kind of toxic financing that allows some 3rd party to convert debt to shares, and they have a lot of shares given the current conversion price.
I was planning to buy in this morning, but that "paid promotion" thing is a HUGE red flag.
Good luck to any of you in this, but I'd make it a point to call the T/A ASAP this morning to find out the current O/S, and if the TA is gagged, run for your lives.
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