[http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

Sound Fundamentals are vital to long-term survival of any business. However, fact that your public company is making a profit doesn't mean that it will trade at a multi-dollar share price. I can list dozens of profitable public companies that trade in Canada and United States with share prices below US$1.00.

The assumption that investors will discover sound public companies, buy their shares and drive up public company's share price is an illusion. It doesn't happen. Market professionals know that it doesn't happen. You should assume that nobody will take an interest in your company based solely on fact that your company has sound fundamentals.

There's a stockbroker adage that holds that "Stock isn't bought; it's sold." It's company that must find buyers for its shares. How does company find share buyers? The company must have a plan that convinces buyers at current share price that there will be buyers at a higher share price. Remember that public investors are usually buying their shares with expectation of a near-term appreciation of share price that will allow them to sell their shares in your public company at a substantial profit.

Whatever you tell public should be true. While SEC ignores about 90% of public company hype by stock swindlers, you do risk SEC civil and criminal action if you lie to public. Whatever "forward looking" statements you use should be your company's future reality. It's wiser to promote your company's stock on simple achievable goals than grandiose schemes.

Announcing your "forward looking" statements in news releases is legally essential. However, don't expect public to buy your shares based upon a news release. It doesn't happen.

[http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

The Shell Game is alive and well in U.S. Stock Markets. It operates on a reporting loophole in GAAP (Generally Accepted Accounting Principles). The potential victims are investment funds, angel investors and public. While U.S. Securities and Exchange Commission (SEC) has been aware of sting for over a year, they have done nothing to stop it. It's been successfully run from New York Stock Exchange (NYSE) to Over-the-Counter Market. Its use is growing because regulators ignore it.

The Audit Loophole

The loophole is rule for reporting a consolidated audit in a public company's annual filing with SEC. The rule holds that any private company in which public company holds at least 51% of equity must be included in public company's audit. The problem with rule is that private company's revenues and profits are easily confused with public company's lack of revenues and profits. And, non-U.S. financial service firms structuring these public company filings ensure that investors in public company have no access to private company asset when swindlers elect to repossess private company. It's a win situation for overseas financial service firms. They get profitable, private company and whatever profit they can make from sale of insider shares. The American investment community gets shaft. The concept of giving investing public shaft was basis for 1989 Forbes claim that Vancouver was "Scam Capital of World." The 21st Century winning of this award should be Hong Kong.

How This Swindle Works