Pugs and Riley did not like this advice being handed out.
Too bad for the investors...
To: Riley G who wrote (1338)
From: michael d kugler
Saturday, August 23, 1997 4:51 PM ET
Reply # of 13170
TO ALL POSTERS..................
Have any of you read the financials? This company is barely alive.
There have been estimates regarding the number of short shares and outstanding shares.
I trust the outstanding number published in the financials. If they're wrong, it's fraud.
In light of the hype surrounding justification for a $20 stock price, I am appalled at how
those numbers are remotely justified. There are no profits, and the company only hints at
future profits. They say they need considerably more money. Their only asset is their
plant and equipment, which could also be worth next to nothing in liquidation.
I can understand all of you wanting to squeeze the evil shorts big time. So do I. But trying
to do it with a company like this is suicide.
Let's say the price does move up considerably. Who will buy it from all you posters who
have been encouraged to buy at any price. There still has to be a fundamental reason to
support valuations. And when all you discover all is not well, you'll all sell at the same
time and get killed.
I admire the premise of this effort. It's a long time in coming. But I fear Mr. Riley is selling
his stock to you all the way up. It would be different if this was a vibrant company with
an established record of profits....or even hope. When was the last time you saw a good
company mention "going concern" warnings?
The only way to profit from this, as I see it, is to be incredibly nimble when you want to
sell. If your certificates are in the mail, you can't deliver. Keep them at your broker, but
remove them from your margin accounts. This will accomplish the same thing, with less
risk to you. Shares in cash accounts cannot be borrowed for shorting.
In short.....be very, very careful. I have seen more creative scams, but this one smells to
high heaven. |
