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Microcap & Penny Stocks : SVCDQ, temporary board?
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To: Arthur Tang who wrote (31)3/16/2000 6:24:00 PM
From: Arthur Tang  Read Replies (1) of 66
 
Some one revealed that SMC had a junior preferred stock which could convert to common stock. But if 15% is collected then the poison pill effects. The stock rights to convert would be paid in one cent or common stock.

Management must be scared of a possible take over?

In bankruptcy court cases, very seldom, the stockholders take over. If DIP has money to spend, they are in charge. If they don't behave responsibly, the judge will appoint a trustee to run it. Trustee may not be kind to stockholders either.

So, what is the stockholder to do?

DIP's business plan can be challenged, but the management still can run it to the ground. Stockholders can not run the company. Stockholders may be able to have a trustee appointed who can execute an alternative plan. Which is to spin out some assets and do a complete financial planning while improve the store operation with cheap advertizing such as banners on the store walls and posters on the store glass doors or windows.

Such is the way things are.
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