basically 99% of small /caps or penny dreadfuls whatever you want to call them are only exsisting to line managements pockets these are lifestlye companies for management and directors ,
sure Management have a dream or some B/S story that they sell to raise capital from the market via penny trawling brokers, the trick for management and brokers though is to offload the shares and sell the stories to the punters that is to the retail investors.
A good rule of thumb ...
if a company has not made a profit after 5 years listed on The ASX it never will and the intention of the directors in these companies is to only line their pockets with S/H and retail investors funds.
ALL big broking houses know this and wont touch these stocks but as long as management can sell the story and suckers believe it penny stocks will continue to thrive .
by the way never hang around for a divedend it will never happen just get in for the pump then get out when everyone starts talking how rich they will be when the company hits the big one .
MEO Price at posting:
6.6¢ Sentiment: None Disclosure: Not Held