I invested in this company last year and wrote this today on one of the financial forums on how you can get totally F%$#@D if you're not careful...
One rule that needs to be always applied when playing in the pennyarcade and that is get your principle out as soon as possible and never assume these plays to be long-term investments...Of all the companies that makeup the OTCBB,only 2% ever make it to the big boards (Nasdaq,Amx or NYSE)..This arena is the slime pit of the stockmarket,but rewards are made with huge risks........
What is so troubling if you own shares in this company (PCEL) for the last few years,with this most recent R/S the second time and a few times on newly authorized,he will ask you again in about 2-3 months for the authorization for more shares...This is the problem with many pennystock companies that their only shot to stay in business is to continue with the printing presses and the shredder working in tandum...
The close yesterday is exactly what happens after a R/S..The price of the shares will continue to fall and settle back to the presplit levels.This happens 98% of the time...
The way Dave has tried to explain this R/S the first time a few weeks ago, with an acknowledgement that he didn't know and then coming back with a R/S,is extremely suspect and pretty sly minded.Any new investor and you die-hard longs should realize you're dealing with principles of this company that their only objective is to themselves and not at all to shareholders interest.
Pacel Corporation is true example of a company and the inner workings on how they survive in the pennyarcade of sesspool slime...OTCBB has few rules to protect shareholders interest and corporate dealings to survive is done at the expense of shareholders...
Here you have an onhands showing on how a company starts out with a few million shares with an optimistic program and an equity line tied to the shares...Management in these situations always tell you this is needed for ongoing operations,although this is very true in pennystocks since financing is extremely difficult to obtain the conventional way...What happens during this process is that the equity lender gets shares and the company gets the loan,then the equity lender sells these shares onto the retail market,thus diluting the shares price and adding more shares...Now,many times the company provides shares for services rendered,ie lawyers,consultants and other perks.These shares also eventually make there way onto the retail market,thus diluting the pps and shareholders equity...What happens now is if the company is not bringing in the bacon,they are mostly relying on issuing shares to stay afloat...
It is here when you have to ask yourself the question on whether the company is a ongoing concern with a viable program and products that will eventually provide shareholders a return on their investment or are they just in business to satisfy their own greed and selfindulgence.
When I came first onboard with PLRP they had promising products (ChildWatch,E-cent) and with a few exchanges with Dave Calkins and the alignment with a distributor to marketing these products, I felt this company has potential.
Then, for me was about a year ago and with less shares than we have now....The problem became a real issue when management asked us for additional shares and it wasn't a normal figure of adding just a 100 or 200 million shares to an already 200 million share company.Geez, they requested a whooping 500 million additional shares to make this a 600 million share company.Now that was just out of this world,not to say irresponsible and just totally lacking sound judgement..If you look at it from a shareholders point of view..
Well,I was against that move and voted accordingly..Then at the SHM meeting last year,Dave of course as an officer went through the motions on how we needed it to continue operations and a no vote will surely effect the ongoing continuous of the company.That jargon is standard mumbo jumbo,but never the less some felt that it was a necessary move,although by a slim margin it got approved..Maybe a recount should have been applied,but I guess most of us were tired chads and hanging chads and the glare of lights peeping through for actual authenticity judgement,ha ha..
What became a problem with Dave's selling this increase is when he mentioned that any dilution will be kept to a minimum and according to Kash's notes.Kash is an individual with sound judgement and honesty who attended the meeting and is a regular member to this board and an asset..Dave mentioned that the newly authorized shares will be kept within 15% of converting into the retail market within a year...Well,these shares were authorized less than 6 months ago and the dilution rate has been going at full speed only to come to a 100 :1 R/S.Now that is a misrepresentation for requesting these shares from the beginning.....
Now with less shares to conduct business,you will be asked for authorizing additional shares in the next coming months..Forget about the explosive revenue growth that was recently reported in the repetitive prs,that was a ploy to get investors to suck up these millions of shares and out of the inventory of the MMs before the R/S...The revenue increase did happen,but is was bought revenue by an acquisition of advantage and at a great cost I might add.
So you see folks,what you have here with PCEL is your typical pennystock that will stay alive only at the expense of new shareholders.They will be printing more and more shares and manipulation by marketmakers and management will never allow this company to gain in share price other than for the daytraders and "Mo Mo" players.....You as a small time investor will never achieve your rewards here,unless you can beat them at their own game.....
All my shares and they a worthless, are profit shares but do make nice conversation pieces.
Have a good day...
ET
One rule that needs to be always applied when playing in the pennyarcade and that is get your principle out as soon as possible and never assume these plays to be long-term investments...Of all the companies that makeup the OTCBB,only 2% ever make it to the big boards (Nasdaq,Amx or NYSE)..This arena is the slime pit of the stockmarket,but rewards are made with huge risks........
What is so troubling if you own shares in this company (PCEL) for the last few years,with this most recent R/S the second time and a few times on newly authorized,he will ask you again in about 2-3 months for the authorization for more shares...This is the problem with many pennystock companies that their only shot to stay in business is to continue with the printing presses and the shredder working in tandum...
The close yesterday is exactly what happens after a R/S..The price of the shares will continue to fall and settle back to the presplit levels.This happens 98% of the time...
The way Dave has tried to explain this R/S the first time a few weeks ago, with an acknowledgement that he didn't know and then coming back with a R/S,is extremely suspect and pretty sly minded.Any new investor and you die-hard longs should realize you're dealing with principles of this company that their only objective is to themselves and not at all to shareholders interest.
Pacel Corporation is true example of a company and the inner workings on how they survive in the pennyarcade of sesspool slime...OTCBB has few rules to protect shareholders interest and corporate dealings to survive is done at the expense of shareholders...
Here you have an onhands showing on how a company starts out with a few million shares with an optimistic program and an equity line tied to the shares...Management in these situations always tell you this is needed for ongoing operations,although this is very true in pennystocks since financing is extremely difficult to obtain the conventional way...What happens during this process is that the equity lender gets shares and the company gets the loan,then the equity lender sells these shares onto the retail market,thus diluting the shares price and adding more shares...Now,many times the company provides shares for services rendered,ie lawyers,consultants and other perks.These shares also eventually make there way onto the retail market,thus diluting the pps and shareholders equity...What happens now is if the company is not bringing in the bacon,they are mostly relying on issuing shares to stay afloat...
It is here when you have to ask yourself the question on whether the company is a ongoing concern with a viable program and products that will eventually provide shareholders a return on their investment or are they just in business to satisfy their own greed and selfindulgence.
When I came first onboard with PLRP they had promising products (ChildWatch,E-cent) and with a few exchanges with Dave Calkins and the alignment with a distributor to marketing these products, I felt this company has potential.
Then, for me was about a year ago and with less shares than we have now....The problem became a real issue when management asked us for additional shares and it wasn't a normal figure of adding just a 100 or 200 million shares to an already 200 million share company.Geez, they requested a whooping 500 million additional shares to make this a 600 million share company.Now that was just out of this world,not to say irresponsible and just totally lacking sound judgement..If you look at it from a shareholders point of view..
Well,I was against that move and voted accordingly..Then at the SHM meeting last year,Dave of course as an officer went through the motions on how we needed it to continue operations and a no vote will surely effect the ongoing continuous of the company.That jargon is standard mumbo jumbo,but never the less some felt that it was a necessary move,although by a slim margin it got approved..Maybe a recount should have been applied,but I guess most of us were tired chads and hanging chads and the glare of lights peeping through for actual authenticity judgement,ha ha..
What became a problem with Dave's selling this increase is when he mentioned that any dilution will be kept to a minimum and according to Kash's notes.Kash is an individual with sound judgement and honesty who attended the meeting and is a regular member to this board and an asset..Dave mentioned that the newly authorized shares will be kept within 15% of converting into the retail market within a year...Well,these shares were authorized less than 6 months ago and the dilution rate has been going at full speed only to come to a 100 :1 R/S.Now that is a misrepresentation for requesting these shares from the beginning.....
Now with less shares to conduct business,you will be asked for authorizing additional shares in the next coming months..Forget about the explosive revenue growth that was recently reported in the repetitive prs,that was a ploy to get investors to suck up these millions of shares and out of the inventory of the MMs before the R/S...The revenue increase did happen,but is was bought revenue by an acquisition of advantage and at a great cost I might add.
So you see folks,what you have here with PCEL is your typical pennystock that will stay alive only at the expense of new shareholders.They will be printing more and more shares and manipulation by marketmakers and management will never allow this company to gain in share price other than for the daytraders and "Mo Mo" players.....You as a small time investor will never achieve your rewards here,unless you can beat them at their own game.....
All my shares and they a worthless, are profit shares but do make nice conversation pieces.
Have a good day...
ET
