FAMH - FIRAMADA Staffing Services Message Board

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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services

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To: M. Murray who wrote (14178)	4/28/1998 3:14:00 PM
From: Brad	Read Replies (6) of 27968

I think I might have something on those large blocks. I've been talking to a guy that knows a lot about how this stuff works and he told me this... Any big buyers that bought in a higher range (i.e. 55› to 68›) have an opportunity to make money when a stock takes an unexpected drop (i.e. 45› range). They can have an account offshore and then "sell" their shares to themselves (to their offshore account) and claim a "loss" on the sale. And they STILL OWN the shares. These same shares can be sold at any time in the future for a profit and because the sale comes in from offshore, they avoid income taxes. It's pretty clever because they can claim a loss up front and reduce their taxes now and still make a profit later and not have to pay the taxes. That's the story they thought was happening here. Pretty smooth. The guy said it's actually a pretty good sign for the stock because it shows big buyers have the long term confidence in the stock. That was his opinion, anyway. Sure is interesting! I learn something new every day. Best wishes, Brad

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