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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services
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To: Brad who wrote (2703)2/5/1998 9:14:00 AM
From: CAPT.DAN  Read Replies (2) of 27968
 
Brad,

Perhaps this is over simplified, but if the financing is as you described, is it any different than obtaining a loan for a house.
The lender takes the house as collateral and when the principal and interest are paid back you have clear title to the house. Or in the case of Famh, all of the stock. The money borrowed for a house is base on the appraised value at the time of the loan not at the end of the loan. All the lender desires is to have the interest paid and to be covered in case of a default on the loan. In my eyes stock or real estate are both the same, collateral. Granted if this were a start up company the lender might require a piece of the pie.
Thoughts anyone?
Dan
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