| | | Yeah, like vultures to dead meat.
FWIW, I've also learn to beware of companies with a lot of debt. Someone said they didn't know what Apple had to gain by GTAT going under... Well, the held all the cards with a huge loan. They could play dirty and force bankruptcy and then get the assets for pennies on the dollar as major note holders. Once they have the assets, they could use them just for Apple and not let competitors have the technology.... Not saying Apple is doing this, but maybe some of the other note holders or even insiders who made loans. I've had a few war wounds from this trick where the owner and CEO gave millions of his own money to a company then when they got some big orders, he stopped giving them cash so they ran out of working capital and had to declare bankruptcy... they he got, as the big note holder, ALL the assets and screwed the stock holders. Funny thing is the bastard CEO smoozed one of the board moderators of SI that some were making fun of a few posts back... so this guy convinced a LOT of people to buy the stock, myself included, thinking this CEO was a good, honest guy looking out for shareholders. Most important lesson learned is ASSUME THEY ARE ALL CROOKS and make them PROVE otherwise before they get your money. Or... go in knowing this is the case and follow their lead and make sure when they sell a lot of their shares, make sure you do too. |
|
