SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Microcap & Penny Stocks : SEDONA Corporation (SDNA)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: dropthatput who wrote (28)1/7/1997 7:00:00 AM
From: Zvi Yammer   of 731
 
On Broad Capital....

It is my understanding that Broad Capital is a Reg S. firm. However, they don;t sell
their stocks down the river.

Nevertheless, be aware that someone who buys stock on a reg S. usually
does so at a discount to market. This price is determined after the sale is made.
So the reg S holder generally sells the stock down to as low as it can go.
(See MTCI..) The pre Reg S. scenario goes like this....although this is my guess
as I have no proof....

Small company with no assets needs cash.
Underwriters will not float stock.
Reg S firm makes deal for Reg S convertable or really cheap 144 stock.
After Deal is made and before announced, reg S firm hires promoters who hype the stock
This drives the price up.. (This is generally very easy for a stock with 8 million shares
in the public at a price of 4 dollars)
Reg S deal is announced and now new owner has 30-40% of company at prices
so cheap you would think they bought it at Wal-MArt.
Major block of stock now overhangs market with owner who could care less about the
shareholders.....

Insiders now have cash to continue drawing salaries and paying their consultants
for another couple of years until they repeat the process.

Yes there are ligitamte comapnies that raise capital through Reg S/144 deals
however, check out what happens shortly thereafter to the stocks of these companies.

Good Luck
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News