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Strategies & Market Trends : Mish's Global Economic Trend Analysis
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To: benwood who wrote (13663)10/19/2004 2:09:04 PM
From: mishedlo  Read Replies (2) of 116555
 
One plunge of FAX was triggered a rights offering to sell new shares for sub-market value. As KT pointed out at the time, rights offerings are designed to benefit the management, not the shareholders. FAX management backed off after a lawsuit was filed by a major stockholder. Perhaps this is the incident to which you are referring? It was about a 20% haircut as I recall.

That is indeed the incident.
Why would anyone choose to purposely screw shareholders this way?
Obviously it benefitted management in some way.
What a crock of horse shit.
a 20% loss overnight in a bond fund with no interest rate or currency moves is preposterous. If they were prone to do this again I would not do business with them.

Mish
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