This is absolutely the worst company I have ever seen...

I know I know I know. Teacher pick me PLEEEEEEEEEEEEASE.

They are making enough money doing the reverse splits and then selling the shares back on the market that they don't need the money making Glovebox. Yeah thats it!!!!!

JMHO

Matter of fact found this lawyer who specializes in corporate misconduct if someone wants to file a class action.
http://www.investorclaims.com/consumer_class_action_claim.html

Ric

quote:

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Originally posted by Ric:
Almost got enough on this board to file a class action law suit against this company. I don't know how many people has got burnt on this one just know it got me the last time this happened.

Matter of fact found this lawyer who specializes in corporate misconduct if someone wants to file a class action.
http://www.investorclaims.com/consumer_class_action_claim.html

Ric

[This message has been edited by Ric (edited September 02, 2004).]

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Disagree with your post. Just because a
company is non-reporting does not mean that
there is no liability or responsibility
to the shareholders. Being non-reporting
does not allow "public" companies to act
in an illegal manner.

A class-action can be filed against "any"
public company.

quote:

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Originally posted by roger7485:
Unfortunately, since the company is a non reporting pink sheet company, you cannot file a class action lawsuit. They will argue that you invested in a company without knowing anything about it, so the money was your risk. Unfortunately law suits against pinks dont hold up. Hypothetically you could sue the MM who trade the security however. Remember that companies do not list themselves on the pink sheets, MM list these companies. Pink sheet companies pay no exchange fees or anything, MM are the ones who decide whether the company is worth listing.

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So yes, to clarify, you CAN sue AFRR, but you CANNOT sue because of loss to shareholder value because you will have no case. Here is why:

"American Fire Retardant Corp. (OTCBB:AFRT - News), www.americanfireretardant.com, is in the business of developing, manufacturing and marketing a line of "Life Safety" products including interior and exterior fire retardants. American Fire Retardant Corp. and their American Safety Products Company also designs new technology for the Life Safety marketplace and the fire resistive applications that are being mandated by local, state and governmental agencies. Additionally, the company is active in the construction industry as sub-contractors for fire stop and fire film installations.

Safe Harbor for Forward-Looking Statements: Except for historical information contained herein, the statements in this news release are forward-looking statements that involve risks and uncertainties and are made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in the future periods to differ materially from forecasted results. "

As long as the company is operating at all, meaning as long as its doing some sort of business transactions, then there is absolutely no case here. With their disclaimer at the bottom of all their press releases, there is nothing that they arent protected against. They dont put that on there for fun, they put it on there to avoid legal problems.

Basically a suit would have to prove that the company lied. You could not prove this. The company has not lied, as all dilution and R/S are covered under the going concern that they have expressed in their 10-Qs. When you bought AFRT, you were expected to have known that they had no substantial revenue and that they would not be able to continue without further financing. This financing came through:

"Cash flow provided from financing activities was $4,775,453 for the six months ended June 30, 2004. This was mainly from proceeds received from officers and employees for stock options exercised during this period. A majority of the proceeds were used for working capital, with $397,873 used to purchase fixed and other assets."

Trust me, alot of people have lost money on pink sheet reverse splits, but really it should just open your eyes to the fact that pink sheet companies often have NO REVENUE. A lawsuit will be costly and will not hold up in court. AFRR will hire a good lawyer with the money from the shares they dumped on you as a shareholder.

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This is true to some extent. Company's, pink or not, have no right to defraud there share holders by doing repeated r/s, dilutions. This company has abused this process over the past 2 years with 4 of these. Company's like this and others that have unlimited A/S and constantly flood the market hurting pps need to be put in there place and held accountable for there actions. Left unchecked this will only continue and thats way there is lawyers that specialize just in this field. Also what money. If a class action lawyer takes a case, its no money to the investor. The lawyer only recieves money if they win. And the lawyer won't take the case unless he feels there is a chance to win. You have no right to determine that process. The Stockholders who feel they were wronged in this and the lawyer only have that right.

By the way, if the Safe Harbor Act was a end all to law suits, then there wouldn't be any. It doesn't protect the company from a law suit just as a person getting hurt in a store can sue if they slip and fall even though they had one of those yellow warning signs up.

good luck.....

All I said is if there are investors out there that lost large amounts on this, they can use this as a option. And they can. I know this for a fact. It's would a lawyer thinks he can make money on it is the hard part. I only lost a small amount on this. Large percentage but small amount.

Warning is a good option but it doen't get to everyone and with the bashing and pumping out there then how does a newby know.

quote:

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Originally posted by roger7485:
Clyde, it would be nice, but remember that the price per share is only what someone is willing to pay for it. If all the shareholders wanted to sell at the reverse split price, then who would they sell it to? You cant require Market makers to buy the stock, so there would be no buyers. Remember that all stocks, even microsoft up until recently were just worth what people will pay for it. If a company does not have recursive cash dividends, there is no reason to want to own a stock unless you believe you can sell it to someone for more than what you paid for it. Thats the risk of buying a fiat good. You could always request your certs and use them as toilet paper, it would probably be worth more if you used your shares that way.

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Let's see, if I do the math it goes like this:

Buy 250000 shares and it does a R/S at a ratio of 250:1 which leaves you with 1000 shares,

Hold it for a few months and your 1000 shares goes through another R/S at 250:1 and drops to a total number of shares owned to .0016, no that's not the price, that's the number of shares you have left.

Are there any investors out there who still have any in their portfolio? Who in the world is buying this stuff with those odds going against you?

We can talk all day about PPS, dilution, or OS and float but it doesn't take a mental giant to figure out this scam. It isn't the point of their method, it has nothing to do with MM's or anything other than cold hard fact. If you buy this stock, you will loose your money.

I feel I owe it to everyone who cares to do any DD to let them know how these thieves work.

There is nothing that can justify this type of behavior in a business. Nothing short of theft in a way which is being overlooked by the SEC.

I wouldn't even suggest trying to swing trade it because you could get caught with something that no one will touch at any price or worse, you could wind up with .0016 shares.
Dakota told you that......