Michael,
If it is some anonymous person, then you have no idea what he is going to do, but at least if it is done in the from of Reg. D and the shares have to be registered, you are aware of WHEN it may hit the street.
If the CHASE shares, for example, were done in the form of Reg D. instead of Reg S., and the shares were registered before they could be sold, you would of known when these shares could be sold and you could of easily seen who the seller was. Only a limited amount of DD would of shown they were planning to sell these shares. All you had to do was read their press release from the time the deal was completed. > ukbusinessnet.com
I have no idea what person or company did received the 150,000 shares or what their connection to ALYD is. We also won't know when they start selling.
The Reg. S. holder doesn't have to show his hand, While the Reg D. holder who is required to register their shares, if nothing else, will allow you to know a seller may be coming in. If you know this holder is likely to sell, as would of been the case for CHASE, you can trade accordingly.
I have nothing against companies trying to raise capital, but I do not like to see it done with a Reg. S. I feel that a company should require the holder to register his shares so the other shareholders are aware of it. |
