MDIN - The CEO Confirms The Obvious - They Are Diluting

If you had any doubt in your mind about just how dumb these CEO's think you are, look no further than Raymond Barton's, MDIN's CEO, blog post dated April 6th.  In it the CEO candidly describes how dilution is great for the company, and why shareholders should be holding their stock while this is all going on.

Let me give you a Guru translation of the blog post:

http://www.ceovoice.com/medgen/
CEO Blog: By Raymond Barton, Chief Executive Officer, MedGen, Inc.

04/06/2010 - The Dilution of MDIN

Hello everyone, I am about to leave for a few days on business and just wanted to address one recent question real quickly. Shareholders are seeing dilution of the stock and have asked me where it's coming from and why they should hold their shares.

As was previously disclosed, our debtors are allowing us to convert that debt to equity. I don't want to mislead anyone in any way so I'll repeat it once more; There's a lot of dilution taking place in MDIN. However, in my opinion the dilution taking place is GOOD for us! 

 Guru translation: Selling millions of shares of stock to unwitting retail investors is a great way to make money.

 There were so few shares changing hands in the beginning that there was no sustainable volume and that is not good for anyone.

 Guru translation:  We had a ZERO bid meaning no one wanted to buy our stock and we couldn't sell it.

You have to remember we are a pink sheet. The best offer does not have to be hit. Can the dilution cause loss of value in the stock and a dropping of the price per share? Sure, but only if everyone sells. We have a huge shareholder base compared to other penny stocks and technically I see nothing wrong with the current dilution as long as the sharholders don't all start selling at the same time.

Guru translation:  The longer you hold onto your shares the longer we will still have a bid, giving us more time to dilute the stock and our huge shareholder base.

Is it risky? Yep. But I believe in myself and my team, and our business model is a rock solid money maker.

I cannot tell anyone whether they should buy, sell or hold. But what I can say is this: If you buy or hold, it should be because you believe in me and my team. Nothing more.

Guru translation:  Who cares if you are losing money on MDIN, you believe in me and my team.  And at the end of the day instead of a loaf of bread on the table for your family, you had a deep rooted belief in MDIN and nothing more.  So you've got that going for you... which is nice.

Thank you

Raymond Barton

Mr. Barton's MDIN 3 year chart shows precisely what has happened when you don't sell your shares.  How about $.90 to $.0001 in 3 years before the recent temporary bump.  A 200-1 reverse split is the only thing that boosted the price over that span, albeit artificially. 

 I do admire Mr. Bartons honesty, you do not get that much in this world of penny stock investing.  While I think the stock has some merits as a buy when the momentum is to the upside, as long as they are dumping stock, you might as well stay away.  There is no way this stock will go back up with the share spigot wide open.