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Gateway Distributors Ltd.
or
4 steps to detect/avoid stock scams
or

Netscape&IE only


Step 1 - Reverse Splits
Gateway Distributors Ltd. - The biggest splitter ever !!

    Reverse splits
  • 1 : 25,000 - Effective dec. 2002 - Symbol GTWY
  • 1 : 3,000 --- Effective apr. 2003 - Symbol changed to GWDL
  • 1 : 900 ----- Effective jun. 2004 - Symbol changed to GWAD
  • 1 : 1,000 -- Effective sep. 2004 - Symbol changed to GAWY
  • 1 : 1,000 -- Effective dec. 2004 - Symbol changed to GAWD
  • 1 : 500 ----- Effective mar. 2005

To avoid high rate and consecutive , reverse splits first don't invest in a small, Nevada incorporated company with very few officers, then you have to go first to SEC page "CIK Lookup" and read the filings of your company.

With so many lies and symbol changes, they didn't even remember their own company's symbol any more and had to do this funny and embarrassing update.

Richard A. Bailey


Florian Ternes


Step 2 - The talking volume

You can easily find out if a company did a RS by watching the amount of shares traded in the last two years. This is an example of a company ( Gateway Distributors Ltd. ) who did several RS.

A symbol/ticker change is also a sign that the company can be doing a reverse split and it's trying to hide old references, history or even name, from suspicious investors.

This is an example of a decent company: the volume is perfectly visible.

Step 3 - Read the charts

Depending on the site, the reverse split looks like this, or better like this one.

Step 4 - Watch behind the 'good' news

It's the same thing, it's always a split and companies which use this resourse of financing means they need your money. Without your money and the splits, they could't survive.
They have no enough clients or their product has no (more) future, but some of them continue to sell shares and do reverse splits while buying Real estate for personal purposes, which is supposed to be used by the (falling) campany...They use to add this infrastructure at the company's financial statements ( as "Property, plant and equipment" ), giving the false impression that the company is strong and well.

They make press releases every few days to give the impression that the company is 'active', is moving and it's making money...like here.