Eddy Blinker for Chairman of the Fed! Message Board

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Pastimes : Eddy Blinker for Chairman of the Fed!

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To: Eddy Blinker who wrote (23)	1/10/1999 5:30:00 PM
From: Eddy Blinker	of 53

Accountants revisited.. Phil, What is the main criteria the accountants are looking for when selecting a target for further processing? Do present figures of the company check out with with the contents of data files on hand showing similar timeframes, designs and executions thereof? Based on present financial data -has the company any chance to obtain such finance on the open conventional market? Excluding a secondary offering. (Most companies do not look for proper follow up finance even when they have all the time in the world,because they are so self assured of their impending success in the markets they aim at (" next week for sure ")and foreclose to themselves proper finance when the time is now.)A secondary public offering of stock through a conventional but legitimate banker can take up to 9 month. Anyone frequenting the threats can read people in particular, shorters statements pertaining the private placement of convertibles as to hit resident investors with the dilution hammer. But dilution is another matter. What people do not know or do not want to accept to know is my contention that the layout and design of most unregistered private placements of, convertibles at below-market conversion prices tied in to warrants are the ultimate proof of economic pestilence and are illegitimate because the transactions incorporate the intent of defrauding investors. The conversion price determines how many shares the holder is entitled to in an exchange with a legitimate banker but not with the hybrids of the Potemkin villages where the conversion price is only fixed upwards but not downwards.In practice the company in need of cash, is approached, the sales pitch rendered, the deal closed. So what the company "thinks",our stock will not go down so what reason we would have to worry about conversion and multiplication of shares or consequent dilution? Now that we have the needed finance our products will fly out the windows and our stock will go up and not down. Multiplication of shares because,the lower the price dives, the more shares the holder of the convertible will receive. Need I explain more about commercial rescue facilitating valves? There is of course a interesting side note.I conducted a little research. Out of 50 companies listed on Nasdaq which have engaged in private placements as described above-how many have shown a substantial (in relation to the normal quote) increase of their share prices before the investing public knew about the deal? And in how many cases you think the subsequent news was "for unexplained reasons" Needles to state that all took a dive after the deal for new cash was announced. Practicing short selling as present times display will eventually drive our world economics into bankruptcy. Country by country.What do you think Hedge Funds and tied in Banks are doing? Thank you Herr Ulrich for having similar thoughts but expressed in a roundabout way. < And also why a public inquiry should matter?> Eventually people will wake up and demand correction of this Shorters Act. In that scenario a public inquiry would be nothing but a whitewashing charade and too late. The valve must be turned off at once as a prudent precaution. Companies out off money and in need of fresh finance ought to obtain the same in public view and through proper channels or go broke. Privat Placements of shares are like discos without a single Emergency EXIT. Would you visit one of those if you knew? ED

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