UPDATE: A person claiming to be the CEO of IMGG replied to my post on IHub, saying the 60 million shares sold were part of the 107 million shares sold at .025…who knows if this really is the CEO, if it is, it’s pretty pathetic that he’s chatting on message boards, but I’ll give him the benefit of the doubt so my educated guess of 423 million shares was wrong, it’s 370 million (LOL), giving this a marketcap of $260ish million, hence my changing the title of the post…but I don’t believe a word he says about why he changed accountants (a penny stock’s CEO’s word is about as good as the local bum begging for a a $20 bill to buy some whiskey)…after digging through their SEC filings, I still think this thing stinks, but who cares, I ain’t a longterm investor/sucker, just a trader and I predicted a 15% drop in stock price based on the pattern….TIMalert subscribers made $5,000+ shorting this and I look forward to the day when all the suckers realize my research quoting filings they never learned how to read isn’t “bashing”, it’s the result of being a penny stock trader for a decade and being able to smell a rat….I was told I was wrong on GVBP, I was told I was wrong on EMGE….I was told I was wrong about Spongetech…all were halted by the SEC…while this one doesn’t smell as bad, I look forward to shorting this again in the future as the penny stock CEO does what just about every other penny stock CEO does, talks highly about new products, raises money when the stock spikes and then fails to deliver…many say I’m wrong, they could have a point, after all, I’m only right about 80% of the time so there is a chance for success HERE LOL!
REMEMBER: You have until this coming Friday, October 16th, to register to attend this special event. from the comfort of your very own home or if you can’t make it live buying that 2-day pass will serve as your order for the DVD of the event, which will be 12+ hours of footage and come with an instruction manual too!.
In the tradition of incredibly corrupt yet shockingly beautiful and predictable pump & dumps like Spongetech Delivery Systems, Inc. (SPNGE) (remember that grand ole list of stock promoters they paid to pump up their stock…before it collapsed and the SEC halted it!) and Nutra Pharma Corp. (NPHC) comes Imaging3, Inc. (IMGG), the latest in a long line of penny stocks whose sole focus is to lure in suckers as insiders and their friends cash out at pumped up prices.
Topping NPHC’s financing done at an 89% discount to their current stock price (disclosure: after TIMalert subscribers and I made $6,000+ correctly predicting, but mistiming, a 50% drop within a few days last time we shorted, I’m short yet again, 5,000 shares), the other day IMGG quietly raised $2.7 million SELLING 107 MILLION SHARES AT 0.025 PER SHARE, A 95% DISCOUNT TO THEIR MARKET PRICE!
And like SPNGE before them, IMGG has recently been increasing their number of both authorized and preferred shares.
The dreaded SEC filings: that suckers don’t know how to read (stay tuned suckers, I’m coming out with an instructional DVD to help you learn how to dig through SEC filings yourselves so you won’t need me and you can spot sketchy stocks before me…and before The New York Post….and before the SEC…contact me now and leave your name and email if you’re interested in my upcoming 6+ hour instructional DVD on the oh so fun reading and analysis of SEC filings):
1. An amendment to the Company’s Articles of Incorporation in order to increase the number of authorized shares of common stock from 500,000,000, par value $0.001 per share, to 750,000,000, par value $0.001 per share, and to authorize 1,000,000 shares of preferred stock, par value $0.001 per share.
It gets worse…
An August SEC filing states that as of “As of July 15, 2009, the number of shares outstanding of the registrant’s class of common stock was 263,361,552.”
An October 9th SEC filing, says there are now 323,361,552 shares outstanding:
Stockholders of record at the close of business on November 2, 2009 (the “Record Date”) are entitled to notice of and to vote at the Annual Meeting. As of the close of business on the Record Date, there were 323,361,552 shares of the Company’s Common Stock (the “Common Stock”) outstanding and entitled to vote. Each stockholder is entitled to one vote for each share of Common Stock held by such stockholder as of the Record Date.
In between these 2 SEC filings, IMGG sold 107 million shares at 2.5 cents/share AND ALSO 3 separate transactions HERE, HERE and HERE selling shares worth $575,000 each time (the CEO and other execs cashed out a bit)…
People, and research websites, think the 323 million shares outstanding figure includes all 4 of these financings, but that’s impossible because the 107 million share offering alone would push the July share outstanding figure to 363 million shares, not 323 million. And of course that wouldn’t include those other 3 financings.
So my educated guess is that the October 9th filing figure of 323 million shares outstanding includes those three $575,000 financings, meaning they basically sold 60 million shares at an average of just under 3 cents/share, as this Yahoo! board poster agrees, and the new 107 million share offering pushes the total outstanding shares to 430 million, giving this utter piece of crap a marketcap of $301 million (I might be wrong, see my update at the top but I’m leaving this so you can my math and realize it’s more important to understand the shadiness of this company given their story as a whole)
I call it a piece of crap because quarterly revenues are dropping 50%+, from $500,000ish to $250,000ish, while their losses grow to hundreds of thousands of dollars…the company claims they’re focusing on their new product (which can’t be validated…of course management will have an excuse for that magnitude of a drop) but the suckers looooooove putting out projections based on some pie-in-the-sky FDA approval for the company’s “revolutionary” product, which could very well happen, but as I teach in my PennyStocking instructional DVDs, ignore all the hyped up press releases and degenerate message board posters to focus on real things like management selling shares at 95% discounts and pumping up authorized shares just like the SEC halted Spongetech did!
And like Spongetech, whose stock price has dropped 90%+ from its hyped up highs, before being halted by the SEC for numerous questions like how many shares outstanding they have (hmmmm, sound familiar?!?!?!), IMGG also changed accountants, terminating Kabani & Company in April 2009. The New York Post ripped Spongetech to shreds for ditching Drakeford & Drakeford as “Drakeford lost its accreditation from the Public Company Accounting Oversight Board on June 16, according to a letter from the SEC.” and then hiring Robison Hill & Co. which according to the PCAOB which oversees accounting firms has “audit deficiencies.”
Can you guess what the PCAOB said about IMGG’s ditched accountants:
Those deficiencies were –
(1) the failure to perform procedures to obtain an understanding of the methods
and assumptions used by a specialist and to conduct tests of the issuer’s data provided
to the specialist; and
(2) the failure to perform sufficient procedures with respect to the valuation of
assets acquired and liabilities assumed in a business combination.
Sketchyyyyy…but IMGG has done agreat pumping up their stock, just like SpongeTech, just like NPHC, just every other pump & dump whose insiders have dumped their shares and/or did financings at inflated prices.
Given the blatant red flags described above you might think this stock price would be depressed, but suckers don’t know how to do real research, they just give into hype and hope..that’s why IMGG’s 2009 stock chart looks like this:
TIMalert subscribers knew within seconds of when I actually shorted IMGG on Friday (I’m still short 7,000 shares at 70 cents/share), soooo many red flags, all publicly available information, anybody can dig up these warning signs but most are too naive to recognize what they all means. TIMalert subscribers, not random internet trolls, will know what I am looking for the stock to do in the coming days and weeks.
