Top Penny Stock Alert of 2011 – OCNF 4035.42% (May 27, 2010, $0.48 – July 26, 2011, $19.85)
AMWI has been extremely aggressive in the past month by involving themselves with some very unique business partnerships which could pave the way for some good revenue generating vehicles for this start-up company. Other cloud-based software companies which trade on the OTC, Sebring Software (SMXI) for example, have yet to see the same investor enthusiasm as their shares have been thinly traded for months.
AMWI shares have been bullish now for 5 straight trading days.
AMWI shares gained $0.11 to close Friday at $0.37. Over the past 52 weeks, AMWI has traded between $0.23 and $1.39. AMWI is currently above its 50-day and 200-day moving averages, both set at $0.26.
AMWI jumped as much as 100% to $0.52 Friday, reversing losses of the prior day when a press release named AMWI as one of the additional defendants to private investor George Sharp’s lawsuit against Writers’ Group Film Corp. Inc. (WRIT.PK).
Sharp, a former investor of Writer’s Group Film, has filed a civil action for fraud, negligent misrepresentation, violation of California Corporations Code Section 25400, and violations of the California Business and Professions Codes 17200 (Unfair Business Practices) and 17500 (False Advertising) against Writers’ Group Film, its Front Row Networks subsidiary, and its current and former officers. He reportedly added several new defendants to his lawsuit after he examined Writers’ Group president and CEO John Diaz in a deposition in front of a court reporter on November 29, 2011.
“As a result of my research and Mr. Diaz’s sworn testimony, I am now convinced that the newly added Defendants conspired to defraud the public by conducting what is commonly known as a Pump and Dump scheme. I believe that they executed a ruse in which Mr. Diaz was to receive financing and support from the Defendants for his projects, which were vended into Writers’ Group, and once the Defendants divested themselves of their shares, the financing and support stopped,” Sharp said in a statement. “I believe that the Defendants used Mr. Diaz’s reputation and background to their advantage and installed him as a figurehead while dumping their shares onto the public.”
On the same day, AMWI made a press release saying it was wrongfully named in the lawsuit.
“Mr. Sharp’s press release contains numerous misstatements of facts attributed directly to Mr. Sharp to include where the Company is located, the nature of the ownership of the Company, alleged relationships to others and a defamatory assertion that the Company is not successful, “AMWI said in its press release. “The Company is informed and believes that Mr. Sharp has filed similar civil actions against numerous other public companies alleging fraud, misrepresentation, violation of California Corporations Code and Business and Professions Code.”
AMWI said it is examining its legal options which may be, but are not limited to, a lawsuit being filed with significant damages being sought. It intends to do everything possible to protect its shareholders from the potential damages caused as a result of this legal action.
AMWI did not have any operating income from inception (April 7, 2010) through May 31, 2011. For the period from inception through the quarter ended May 31, 2011, it recognized a net loss of $44.23 K. Some general and administrative expenses during the year were accrued. Expenses for the year were comprised of costs mainly associated with legal, accounting and office.
As of May 31, 2011, AMWI had no capital resources and will rely upon the issuance of common stock and additional capital contributions from shareholders to fund administrative expenses pending full implementation of AMWI’s business model.
California Corporations Code – Section 25400
It is unlawful for any person, directly or indirectly, in this state:
a) For the purpose of creating a false or misleading appearance of active trading in any security or a false or misleading appearance with respect to the market for any security, to effect any transaction in a security which involves no change in the beneficial ownership thereof, or (2) to enter an order or orders for the purchase of any security with the knowledge that an order or orders of substantially the same size, at substantially the same time and at substantially the same price, for the sale of any such security, has been or will be entered by or for the same or different parties, or (3) to enter an order or orders for the sale of any security with the knowledge that an order or orders of substantially the same size, at substantially the same time and at substantially the same price, for the purchase of any such security, has been or will be entered by or for the same or different parties.
b) To effect, alone or with one or more other persons, a series of transactions in any security creating actual or apparent active trading in such security or raising or depressing the price of such security, for the purpose of inducing the purchase or sale of such security by others.
c) If such person is a broker-dealer or other person selling or offering for sale or purchasing or offering to purchase the security, to induce the purchase or sale of any security by the circulation or dissemination of information to the effect that the price of any such security will or is likely to rise or fall because of market operations of any one or more persons conducted for the purpose of raising or depressing the price of such security.
d) If such person is a broker-dealer or other person selling or offering for sale or purchasing or offering to purchase the security, to make, for the purpose of inducing the purchase or sale of such security by others, any statement which was, at the time and in the light of the circumstances under which it was made, false or misleading with respect to any material fact, or which omitted to state any material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, and which he knew or had reasonable ground to believe was so false or misleading.
e) For a consideration, received directly or indirectly from a broker-dealer or other person selling or offering for sale or purchasing or offering to purchase the security, to induce the purchase or sale of any security by the circulation or dissemination of information to the effect that the price of such security will or is likely to rise or fall because of the market operations of any one or more persons conducted for the purpose of raising or depressing the price of such security.
AMWI has attracted a tremendous amount of attention. On Thursday it took all of 50 minutes fr the stock to tank from it’s $1.37 to $0.30. AMWI has made some good acquisitions and partnerships which could lead to a good revenue stream. AMWI has been on every penny stock watch list world wide by now.
Mama used to say, be careful when you go swimming; there could be sharks in the water. Mama didn’t know about the alligator feeding frenzy that could also happen.
Watch AMWI for the first 20 minutes of today’s session. If it starts running, jump in but make sure to protect yourself also.
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AND AS ALWAYS…………..
- Do your own research.
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Good luck in making the best penny stock picks. Have Fun!!