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Non-Tech : Bid /Ask Spreads - Market Manipulation

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To: SE who wrote (257)2/2/1997 1:38:00 AM
From: ----------   of 308
 
Scott:

Sounds like you summed it up pretty well, and you already know the
answer.

There MAY be another reason for this type issue, but the only
reason I see is: "Our company is in DEEP financial doo-doo. We
cannot even issue Junk bonds....nobody would buy them. BUT, if
we promise 2 or 3 to 1 leverage (e.g. 200% -300% "interest") we
may get some takers & NOT have the debt on the books."

This is just my personal opinion, period.

I cannot see how this benefits the poor common shareholder in any way.
I HOPE someone can tell me why I am wrong. I'd like to think there
was a good side to these offerings.

Doug
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