It only takes someone 5 minutes to read a filing, and yet so many people don't do it. Filings came out today on TAGG, and recently on SNPK and I could not wait to read them, since www.awesomepennystocks.com www.titanstocks.com, etc deals hardly ever file again when they are done with the coverage.
Let's take a quick look at TAGG, TaggLikeMe. According to the filing this company does not have enough money in it to take me to dinner, at least not anywhere nice. TAGG has $315 dollars in the bank zero revenues and not much else to speak of. There are however the shares that were issued to settle "debts" on the books to previous investors and people in the company.
On June 15, 2012, the Company agreed to settle $135,000 of notes and accounts payable debts by issuing 22,500,000 common shares fair valued at $135,000 or $0.006 per share (Notes 7 and 11).
On June 29, 2012, the Company issued 45,378,670 shares of restricted common stock with a value of $272,272 related to the acquisition of Glob Media (Note 3).
Our Board of Directors, pursuant to unanimous adoption of consent resolutions of the Board of Directors (the "Board of Directors Consent Resolutions") dated effective as of June 15, 2012 (the "Effective Date"), approved and authorized the settlement of an aggregate $135,000 (the "Debt") of an aggregate $204,572 in current indebtedness due and owing to five certain lenders (the "Lenders"). We owed the aggregate $204,572 to the Lenders, which was associated with loan principal, accrued interest and/or services rendered. The Board of Directors authorized the settlement of the Debt by the issuance of an aggregate 22,500,000 shares of our restricted common stock at $0.006 per share effective as of June 15, 2012. Our shares of common stock were previously trading on the OTC Bulletin Board at approximately $0.0054 per share from April 15, 2012 to the Effective Date. The aggregate 22,500,000 shares of restricted common stock were issued to the five Lenders as of the Effective Date.
The settlement of the Debt was made to five non-United States Creditors in reliance on Rule 903 of Regulation S promulgated under the Securities Act of 1933, as amended (the "Securities Act"). The securities issued in the settlement of the Debt have not been registered under the Securities Act or under any state securities laws and may not be offered or sold without registration with the United States Securities and Exchange Commission or an applicable exemption from the registration requirements. There were no finders' fees or commissions' payable by us upon the successful completion of the settlement of the Debt.
I don't have all of the data, but according to OTCBB.com monthly trading reports, TAGG year to date (this is only as of October) was, I can't believe I'm going to type this number 1,129,895,026
This stock alone in October and November was responsible for over 200million dollars in dollar volume on the OTC. And I would bet that there are still 5,000 to 10,000 people still holding this, not realizing that more shares will be coming into the float soon! (end of December) As there is only a 6 month hold on Restricted shares issued.
SNPK, traded around 1,435,456,863 shares over the 3 month run the stock had in March, April, and May of this year again over 200million in dollar volume during this period and again not much in the filings. SNPK has 44,593 in the bank as of the last filing and actually has around $3million in revenues so far this year. (which is much better than I would have guessed)
On February 13, 2012, we entered into a Settlement Agreement and General Mutual Release (the "Whetu Settlement Agreement") with Whetu, Inc. ("Whetu"). Pursuant to the terms of the Whetu Settlement Agreement, we issued fifty million (50,000,000) restricted shares of our common stock to Whetu for the cancellation of that certain Promissory Note (the "Whetu Note") issued by us in favor of Whetu on July 13, 2011 to evidence funds previously loaned by Whetu. The Whetu Note had a principal amount of one hundred ten thousand ($110,000) and accrued simple interest at a rate of ten percent (10%) per annum and was due and payable on demand upon ten (10) days written notice. There was $117,986 outstanding under the Whetu Note as of the date of the Settlement Agreement. The fifty million (50,000,000) shares were issued to Whetu on February 16, 2012.
So these shares were sold in the trading PR campaign of the stock, or are about to be sold as free trading shares.
As a result of the Share Exchange Agreement (the " Transaction "), our current business operations shall be conducted through our wholly-owned subsidiary, Healthcare Distribution Specialists LLC, and our principal business is now that of Healthcare Distribution Specialists LLC. Accordingly, Item 2.01(f) of Form 8-K states that if the registrant was a shell company, as we were, immediately before the transaction, then the registrant must disclose the information that would be required if the registrant were filing a general form for registration of securities on Form 10. Pursuant to Item 2.01(f) of Form 8-K, we are providing the following information that would be included in general form for the registration of securities on Form 10.
The above reference is from a 8kA that the company put out based on the fact that before the recent transaction was effectuated they were a shell. New rules for shells imply that 144 cannot be used for a year so what exemption or registration were the shares above issued and sold under during the promotion that went on. 1.4 billion shares traded?
While I am sure one day (soon) we will have answers to all of these questions, as I am sure I am not the only one pondering them.
I could write about these companies all day long, all the reasons why you should never buy and hold a stock like this, no matter what the email tells you Zero plus Zero, plus another Zero is still freaking Zero!
These stocks are fun to trade, and you may be able to scalp a quick gain of some other unsuspecting fool, but at the end of the day, most that trade this kind of play will lose, and sometimes lose big!
These companies might have had great ideas and plans to execute them, but when you issue shares to someone and have the company promoted like this, it's basically a liquidation of the company to the market, and it is impossible to fix. These companies will be scared by this for the rest of their existence.
It's too easy to write negative articles about companies like this, I only do it because of the large amounts of money that are disappearing from everyone's pockets, and because the overall market is suffering from these stocks!
READ THE COMPANY FILINGS!
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.