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Thursday, July 24, 2008

Purple Beverage, PPBV a scam?

Hi everyone. If you've ever followed any of my blogs before, you'll know that the following piece is a little out of character for me-- i'm not usually this serious. Also, I don't talk about stocks, trading or anything financial because I don't think i'm qualified enough. However, I do trade stock personally and I assume most people reading this piece do too. And it is for your benefit (hopefully) that I'm posting this.

I recently bought some stock in the company Purple Beverage Company Inc.(PPBV). Yes, it was an OTC stock and for that reason I didn't invest too much, but after weeks of flat line graphs, I decided to investigate and find out if this company was still alive. Below is an excerpt of what I found:

Our payment of a monthly 6% performance bonus to Mr. Farnsworth, our chief executive officer, will diminish our profitability

Our limited operating history may not serve as an adequate basis to judge our future prospects and results of operations.

Our independent auditors have expressed substantial doubt about our ability to continue as a going concern, which may hinder our ability to obtain future financing.

We may need additional financing to execute our business plan.

The lack of any significant market in future periods will adversely affect our ability to increase our revenues and our margins.

Increased competition could hurt our business.

We are dependent on a limited number of distributors who purchase all of our Purple product, the loss of any of which could result in a material adverse effect on our business.

Theodore Farnsworth, our chief executive officer and president, owns a substantial portion of our outstanding common stock, which enables him to influence many significant corporate actions and in certain circumstances may prevent a change in control that would otherwise be beneficial to our stockholders.

Theodore Farnsworth is our sole director. As such, we do not have any independent directors and have not implemented various corporate governance measures, in the absence of which, stockholders may have more limited protections against interested director transactions, conflicts of interest and similar matters.

Options granted to our celebrity endorsers and members of our management will have a dilutive effect on our common stock if such options are exercised; and if the underlying shares are ultimately sold in the public market, the market price of our common stock could decline


If you want to get the full story, please follow this link: HERE OR THIS

SO MY QUESTION IS THIS: DO YOU THINK PURPLE BEVERAGE IS A SCAM? PLEASE LEAVE A COMMENT.




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2 comments:

marissaleora said...

YES!!!! Ted Farnsworth is a scam artist who goes from start up to start, with the next BIG thing and everybody loses their money but him!!

Anonymous said...

I think Mcdonalds is a scam funny thing to since I worked for Mcdonlds 10 years & in that time had the stock option as a manager part of my 401k. Well it's been a good 10 years since my glory Mcdonalds days. I tell you folks if anyone can pull off a scam it's Mcdonalds. I sold all that crazy stock for Apple stock a few years ago. Good thing because I love those Apples. For my next venture I'm looking for the next best thing. My advice is don't expect to make a lot of money, it won't happen. Give it time & no matter what happens keep it for 10+ years. I'm not to crazy about penny stocks but like I said I'm looking for the next best thing.

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