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Technology Stocks : Avalon Group, Inc.

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To: equalizzer who wrote (750)12/17/1998 12:07:00 PM
From: OFW  Read Replies (1) of 1530
 
My past experiences in such restructurings in OTC stocks, Equalizzer, are that often the small investors (i.e., non-insiders) get screwed during such times of restructuring.

Regretfully, when insiders determine the terms of restructurings they often determine ratios and special terms which directly benefit their personal holdings (i.e., preferred shares and warrants, etc.) and downplay the role of the smaller individual shareholders in the process. This is especially true if one of the parties happens to be a private (non-publicly traded) company since there is less regulatory accountability with these companies.

As is typical of this game, often only a limited number of insiders benefit and the rest of us get screwed. Would be nice if someone, just once, would look out for the little guy.

It sounds like you have a lot more experience in these matters than I, so I would appreciate any comments you may have about how the little guy can protect himself in such restructurings.

Offie
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