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Runu (symbol) a good stock investment?


Runu (symbol) a good stock investment?

It is a very high risk investment. You are very likely to lose your entire investment, but if the company does well you may end up making many times your investment in profits.

Consider the following extract from their latest SEC filing.

"In connection with the transaction described in Item 2.01 above, Rudy issued the 35,000,000 Rudy Shares of its restricted common stock, effective as of February 11, 2008. The issuance was exempt from registration requirements pursuant to Section 4(2) of the Securities Act of 1933, as amended.

Item 5.01 Changes In Control Of Registrant

1. See Item 2.01 above. The three (3) shareholders of RBI acquired an aggregate of 35,000,000 shares of restricted Rudy common stock, in connection with the Acquisition. Prior to the issuance of the shares, Rudy had approximately 43,300 shares outstanding as a result of a 9000 to 1 reverse stock split which became effective on January 21, 2008. The Rudy Shares currently represent in excess of 99.5% of the outstanding shares of the common stock of Rudy."

So, assume you had owned 810,000 shares at the beginning of the year. After the reverse split you would have 90 shares, but that would still have been 0.2% of the company. After the sale of 35,000,000 additional shares, you would own 0.00026% of the company. Clearly shockholders have not done well recently.

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