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Microcap & Penny Stocks : IMDS nasdaq bulletin board

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To: tonto who wrote (1567)	8/4/1998 11:11:00 PM
From: Eric Winterhalder	Read Replies (1) of 4122

Ah yes, another co whose management is exhibiting the very essence of fiduciary irresponsibility by sending their stock on the reg S train to ruin. I've seen it many many times and the outcome is virtually assured. The European sharks are just beginning to feed. The preferred method you ask.. well typically they make all their money on the short side by shorting against the convertibles (remember, they are floorless) thereby collapsing the stock and allowing them to short even more shares. This process repeats itself until they've recovered all the initial funds plus a healthy profit. They then convert and cover. This presents very little risk on their part. About the only risk is that the company's management, if their not totally clueless, will see what's going on and attempt to refuse to honor the conversion which will result in a lawsuit. In most cases the co will lose as most of the sharks that prey on these co have the procedure so finely honed that it would be impossible to prove any wrong doing. The end result... many millions of worthless shares outstanding. Next item on the menu? Reverse split of course. IMHO, EW

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