February 8, 2016: If any penny stock supports the old adage that is credited to P.T. Barnum, it is that of Metrospaces (MSPC). Astonishingly, this dirty ticker continues to find people willing to buy the snake oil sold by CEO Dan Silva and company.
Since we first talked about those beating this dead horse exactly a year ago, MSPC has undergone yet another reverse split, this time at the rate of one new share for 1,000 old shares. In total, over the 10 1/2 months from October 31, 2014 to September 11, 2015, shares have been rolled back one for 500,000. This means that today's share, which is trading at about a quarter of a penny, was valued at $1,250 just 16 months ago.
» Related: "Bottom Bouncer" Alerts Abound as MSPC Prepares to Hit Rock Bottom...Again
What is even more disturbing is the expediency at which new shares are generated after these shareholder crippling rollbacks. Following the October 2014 one for 500 reverse split, it took less than 3 months for the share count to increase from 6.3 million to almost 850 million. A persistent paid email promotion campaign from mid December 2014 to mid February 2015. enabled insiders to dump those newly minted shares. Proud owners of those shares did not stay that way for long, as their loyalty was once again tested with last September's one for 1,000 beat down.
Did the investing public learn from history? Nope!
» Related: MSPC Past Performances
Why this scam continues to draw attention from even the naivest investor is beyond reason. At last report, the company had less than a million dollars in tangible assets and 9 million dollars in liabilities, numbers that will not quickly improve when reported revenues are zero or less than zero.
You can bet that yet another reverse split is in the offing, to be executed as soon as the pigeons lap up the current 1.8 billion shares of bird feed.