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Tuesday, January 11, 2011

Fitty Cent Economics

This is the funniest thing I've heard this week.  50 Cent tweets tiny stock soars

The funny thing to me is not that so many people would buy the stock - the speculation that this would cause so many other people to buy it is what drove people to buy it.  It's this line:

H&H is an extremely sketchy investment and even got the dreaded "going concern" notice last March as its auditor shared doubts about the company's future. The company reported less than $300,000 in revenue last quarter but lost $1.3 million, the Post reports.


There are some funny loans at the company as well, the Observer notes. H&H lent $141,000 to what it describes as "an entity in which our chairman's brother is an officer and owner."

Why did 50 Cent decide to buy stock in a crappy company?  The company loaned money to the CEO's brother? 

By the way, I think this is some kind of stock fraud, but I don't know enough about stocks.

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