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Strategies & Market Trends : The DD Maven

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To: waitless who wrote (6)11/30/2005 5:21:44 PM
From: rrufff   of 736
 
Let me add my voice to that request for your list, to which we all can add somewhere. I've posted a few times when I come across some of the names that are involved in serial dilution and r/s, but it's more a random thing as there is no organized board out there.

There is a board on IHub that lists companies that have serial r/s (reverse splits) but not the principals and attorneys.

A little up the food chain is the list of vulture capital companies. When you see these names, you pretty much know your share structure is cooked. The real subpennies and pinkies don't typically get them as there is not enough liquidity for these deals.

The deals are typically at least $3-$5 million. If you see the names Cornell or Laurus, make sure you read the terms of the deal very, very carefully.

As I've pointed out before, you would be amazed how many CEO's have no clue that a vulture financer can dilute his company exponentially. I related a couple of times the story of the CEO who said to me that he "trusted them as they said they would support the stock and never sell until it went up." I sold immediately and w/i a few months the stock went from the teens to zippo.
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