Premier Penny Stock Site: DanceswithBulls.com Advisory - Global Materials & Services Inc - Buyer Beware

Premier Penny Stock Site: DanceswithBulls.com Advisory - Global Materials & Services Inc - Buyer Beware!

(PRWEB) January 10, 2005 -- Global Materials & Services Inc. ( OTCBB: GMSV) under various prior corporate identities has continuously repeated the pattern of (1) Reverse Splitting their company shares (2) Issuing press releases to attract new investors, (3)Authorizing large amounts of shares via S-8 filings for employee incentive plans which are (4)Sold into the market, increasing the number of common shares traded and hence (5)Rendering the shares held by all previous investors worthless.

A reverse-split is a reduction in the number of a corporations shares outstanding that increases the par value of its stock or its earnings per share. The market value of the total number of shares (market capitalizations) remains the same at the time the Reverse-split takes place. For example, a 1:2 reverse split means you get half as many shares, but at twice the price.

The following is a Reverse-split history for Global Materials & Services Inc.:
AFRN 1:2000 R/S 01/06/2005
AFRN 1:2000 R/S 11/01/2004
AFRT 1:250 R/S 09/01/2004                    
AFRR:1:250 R/S 03/22/2004
AMFR 1:200 R/S 06/27/2003
AFRC 1:10 R/S 09/12/2002

An example of a Press released used to attract new investors AFRT Blazing the Trail was released on March 22, 2004 the very same day a 1:250 R/S occured.

While the market value of the total number of shares remains the same at the time the Reverse-split occurs, dilution or selling of additional shares into the market by individuals issued S-8 shares has in 100% of the Reverse-split occurences resulted in a loss of a majority of the value of all prior investor holdings.

A Form S-8 allows a public companies to register shares that have been, or will be, issued to directors, officers, employees and consultants - instantly, with minimal disclosure. It becomes effective immediately after it is filed with the SEC - before it is reviewed by anyone. The shares are registered and may now be sold. Let the buyer beware.

The company is not required to identify the individuals who will be receiving shares. Instead, the shares may be registered for a generic "Employee Benefit Plan." Which employees will "benefit" from that plan? The company is not required to identify the potential recipients when the Form S-8 is filed. The most recent S-8 filing under a prior corporate name was on October 15, 2004.

The recent Reverse-split by Global Materials Servics Inc (OTCBB: GMSV) has also in essence concealed historical prices and press releases as updated by Yahoo and other Financial Content Sites. In essence, financial content information of prior company names is unavailable for unsuspecting investors to review. A 3 year stock chart found at stockcharts.com will however reveal that the numerous Reverse-splits by the company would have hypothetically resulted in an investment of several hundred thousand dollars (exact price unknown) for one share of GMSV a few years ago.

While historical price data, PRs, and SEC filings may be difficult to research on many financial content sites, you will find a majority of recent information in the Due Diligence forums of http://danceswithbulls.com .

Before you invest in any publicly traded company, make sure you do your due diligence. It is not a single press release, sec filing, company or market event that determines the price and price movement of a stock on any particular day. Rather, it is the ongoing dissemination of information and events from various sources into the market that constantly alter a companies stock price.

Whether you are new or experienced in the stock market, you can find ongoing and updated due diligence and discussions of the developments of over 1000 popular public traded companies by thousands of investors at http://danceswithbulls.com each day.

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