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Technology Stocks : Vidikron Technologies Group (VIDIC)
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To: firstman who wrote (760)11/16/1998 12:19:00 AM
From: Don Bigelow  Read Replies (1) of 782
 
I bought a small quantity of PJ some time ago after seeing a demo on the Digital Array from TI. Ever since then I have been trying to understand the steady downward death spiral this stock has been in. The thread has proposed a number of scenarios that relate to manipulation of the stock..something unrelated to the product acceptance/success. These seem pretty plausible, and seemed more so after I read an article in the July AAII Journal, Volume XX number 6. The title was " Some Words of Caution for Investors in High-Tech Speculative Stocks". It may be available on their Web Site -- www.aaii.com. It deals with the impact of variable Convertible Preferred Stock as a mechanism for venture capitalists...and how it influences the shorts. I recall something about PJ's financing a while ago that mentioned some financing device like this...but havn't rechecked further due to lack of time( and interest at this point). Very interesting explanation of what predatory venture investors can do to a stock price , and still make a bundle. The end of the game is when reverse stock split comes about to maintain a 1$ per share NASDAQ price floor...the stock becomes shortable again and the spiral continues.

I cannot remember all the details on PJ's financing, maybe its different , but the stock reaction we've seen certainly fits the pattern described in the article. And if that so, the reverse split is no good to any of the little guys.

I still own a few hundred shares....I think Schwab might charge me more to sell them than they are worth. I really think we got taken to the cleaners by the high rollers who know the right tricks....live and learn.
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