OTC Shell Search and DD... Message Board

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Microcap & Penny Stocks : OTC Shell Search and DD...

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To: Rupert Gittens who wrote (215)	4/16/1998 1:06:00 PM
From: Crossy	Read Replies (1) of 858

Rupert, < FLOORLESS > means no fixed conversion price attached. The harmless looking statement: "preferred stock issued, where the holders of each unit of preferred stock class X can convert into common stock par value 0.YY with conversion price as of average of the last 5 bid price of common stock" means DANGER Dilution ahead. Simply because there's no fixed conversion price attached - the holders of a floorless instrument can short the hell out of a stock and can ALWAYS deliver - no short squeeze possible !! Consider this: first they short to have risk neutral position. From the shorting the price tanks, so they can short more etc. This goes on until the holders of the floorless carry away the difference between issued and authorized common stock. Ugly game ! They end up owning the company without risking anything... Additionally they are making a good profit from shorting.. best wishes CROSSY

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