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Technology Stocks : NTN Communications, worth 185 million?
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To: Juliand who wrote (1835)12/30/1997 8:52:00 PM
From: dwight vickers  Read Replies (1) of 2985
 
J,

So you're saying that REG.S type abuses do not exist? Or just that you are not familiar with them?

Some of the rules were changed a year or so ago to bring some of it out in the open. I suspect that NTN avoided the use of a REG.S specifically because of the bad image it has deservedly acquired. But the functioning of the REG.D is pretty much the same.

Here are a couple of links where you can read up on discounted convertible financings:

stockdetective.com

tscn.com

There also was a very detailed story in the WSJ within the last year detailing the abuses of REG.S. I naturally have never shorted offshore myself. But I can picture many ways it could happen.

An international brokerage could lend the shares from it's inventory. How about an offshore (handholding type) broker who will sell the stock short with the signed financing as his guarantee that the REG.S/D financier can deliver the shares. This is most likely in my estimation.

Not overly complicated, actually. And none of those people are obligated to report to our SEC.

The second one is a link I haven't posted here before. J. Michael Pinson is a highly regarded market commentator.

What kind of money are you managing?

Good luck,

Dwight
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