Seeing through the hype on Converted Organics’ ‘common stock dividend’
Posted by: in Stocks Money NewsFiled under: Press releases, Scandals
Shares of Converted Organics (NASDAQ: COIN) have been on a tear of late, rising from under $6 to Tuesday’s closing price of $12.58 in the first weeks of January alone.
The Boston-based company describes itself as “dedicated to producing a valuable all natural, organic soil amendment or fertilizer product through food waste recycling” but so far has not reported any revenue. The company has not reported any substantive events so far this year (i.e. not a single 8-K or 10-Q or 10-K filed with the SEC in 2008), but investors have certainly been flocking to the stock.
One area of concern surrounding the company is this press release that it issued on December 18th:
Converted Organics Inc. (NASDAQ: COIN, COINW, COINZ) today declared a quarterly common stock dividend of one (1) share of common stock for each twenty (20) shares of common stock outstanding, payable to all holders of record of the common stock on the last day of December 2007. No fractional shares will be issued in connection with this stock dividend program. This dividend will be payable on January 14, 2008 to all shareholders of record on December 31, 2007.
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