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Technology Stocks : AER Energy Resources Comments?
AERN 0.000010000.0%Oct 31 9:30 AM EDT

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To: paul lin who wrote (239)5/23/1996 3:09:00 PM
From: Ogen Perry   of 276
 
No, I would not invest just to bail out the insiders. However if these guys already had a big chunk of this company (I have no idea if they do or not) then they would invest to bail out the company. The fact that that gives some insiders a way out is a side effect.

In any case, they did not invest $20M but $10M and the price is misleading since they also got warrants for that money. Assuming the warrants are worth between $1-$2 a piece, the implied price they actually paid for the shares is only about $5.5.

People are assuming that the investment (and the subsequent increase in trading volume) are due to some imminent announcement. IMO, which is based on no facts, there is no announcement -- just a temporary bailout.
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