February 15, 2010
A Heads up for LUXD traders.
In order to fund the further development of its Assets the Company intends to attempt to raise additional Equity through the sale of common shares of its stock in the next year.
There are 2,500,000 shares of preferred stock that will be convertible to common shares, at the holder's election, at a rate of 10 common shares for each preferred share. The holder in this case is LUXD’s founders as stated in 10Q. This will be another 25 Million shares introduced to the total outstanding shares. Since LUXD stated that they are planning on selling shares to raise additional capital, I would surmise that once these preferred shares are converted to common’s that the selling will begin. The contract for these preferred were for 2 years and they issued in the period ending August 2008, so they could begin selling these shares in may if that is in fact when they issued them.
As you all probably know that LUXD has been heavily promoted the past couple of weeks. From February 3rd, 2010 stock price of .05 to February 11, 2010 stock price of .12. That is a good run of over 100% in one weeks worth of trading days. The below email advertisers received 1 million shares each ; yes FREE trading shares for this penny stock, so they can unload these whenever they desire.
Let’s look at the Volume: The average volume of this run up has been about 55,000 in the past 10 days. That is not even 1 million shares; so if just one of these email advertisers chooses to sell their 1 million free trading shares, this could essentially wipe out the 100% plus gain LUXD has experienced.
This is just a precautionary so investors are informed of the truth as I have been ripped off big time from these Free Emailer’s. If you plan on holding Lux Digital Pictures for the long haul you will probably be alright as it appears they will have the funds to make it through 2010. If you are looking to day trade just be aware of this and set your stops accordingly.
There is a total of 18 Million Free Shares that LUXD just gave out to increase their share price. I would imagine that these email advertisers will continue their LUXD advertising campaign for a while, so this is just a heads up, who knows what the stock will do. Here is the full 10Q
I don’t like it when they place the link on Yahoo Financing and they just display the positives of the company; I wish they would display the entire 10Q. This is just a heads up so you don’t get burned as I have on many of these freebie email stock advertising agencies. They are usually the true winners here, because not only do they get FREE shares, but they buy more with their own money just prior to distributing the emails that says how great the company is. Good Luck Trading.
Compensation:
Penny Stock Pipeline - 1,000,000 free trading shares
Below Wall Street - one million free trading shares
Investment Opinions - one million free trading shares
Investment Internet - one million free trading shares
Penny Stock Pipeline - one million free trading shares
Tunnel Stocks - one million free trading shares
Mountain Stocks - one million free trading shares
Lightning Stocks - one million free trading shares
The Future Super Stock - one million free trading shares
Stock Pick Reporter - one million free trading shares
Stocks Commuter - one million free trading shares
The Next Hot Stock - one million free trading shares
The Next Super Stock - one million free trading shares
The Next Stock Winner - one million free trading shares
Wall Street Opinions - one million free trading shares
Emerging Growth - one million free trading shares
QualityStocks.com - one million free trading shares
TheSUBWAY.com - one million free trading shares
That’s a lot of FREE shares people. Wow!
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****JUST ONE LAST NOTE ON LUXD: They only had revenues of a little over $15,000 for the entire quarter! That’s not too great. They had 4 Times this the year before! There is usually a reason why the stock is at a price it is. One Warning sign is also when a company pays to be notices with Free Shares. A big sign that says “Pump and Dump”.
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