Wednesday, October 24, 2007

Alert: HISC.PK is now HISU.PK

What does it mean?

Homeland Integrated Security Systems, maker of Cyber Tracker, has pulled another cheap stunt with their recent name change. Previous owners of shares now have 1 share of for every 400 shares of they own.

Currently trading at approximately $0.04 a share, let's say some lucky fellow bought 400,000 shares of less than a year ago for $0.02 a share (total: $8000), he is now left with just 1000 shares of with a total value of $40.

Should you buy HISU.PK?

Don't do it.

Commentary: On Homeland Integrated Security System's reverse split

Reverse splits are not always bad; it's an easy way for HISS to eliminate their outstanding shares. And while HISS would be able to get a fresh start, preying on other naive speculators, they have completely erased the possibility of their previous shareholders' recoupment. If they are not concerned about their shareholders now, how likely is it that they will care about them in the future?

HISS should have made efforts to dispose of outstanding shares by buying them back as they had promised over and over again.

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