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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Social Media Marketing: Is it right for you?

Most people know or have at least heard about social and new media. For the benefit of those who've been under a rock for the past year or two, here are some definitions to guide you:

Social Media: Are software tools that allow users to generate and exchange content. For example, blogs, twitter, myspace, facebook etc.

New Media: It's a general used to describe non-traditional ways of delivering (advertising or promotion) messages. For example, DVD, youtube, v-casts, podcasts etc.

NOTE: Social media and new media have become so intertwined that all references to social media can be assumed to include new media.

Now, social/New media is the latest craze in marketing in these days of web 2.0. Everyone seems to have an opinion about how to make it work for you, and there are many self professed "experts" out there who are more than willing to help you implement some stratergies -- for a fee of course. The question however remains: should you be using these new marketing tools? The short answer to this questions is a resounding YES! And I'll tell you why if you care to read a little bit more.

There are lots of facts and studies out there, backed be some really reputable sources, that will tell you that times have changed-- the balance of power has now shifted from organizations and their marketers, to consumers. This basically means that organizations no longer call the shots. I'm not one of those reputable sources (so I'd encourage you to do your own research on the issue), but I can point to a couple of scenarios to suggest that this assertion is probaly true. For example, when was the last time you bought an item just because you saw an ad for it? Versus, when was the last time you bought an item after you saw an ad for it and consulted some message boards or talked to a friend who had used the item or read a blog about it OR all 3? The point is, people no longer care what organizations say about themselves or their products. People care about what OTHER people say about organizations and their products, and that's where social media comes in handy.

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