Tom,
>Seconds_Out...You bring out another point associated with convertible
stock deals that nobody has mentioned.."negative psychology"...
Very true. I know many Investors that will not touch a stock with a
convertible stock deal hanging over it's head.<
Yeah, and I'm one of them. All I need to hear are the words "convertible debentures" and I'm history! I've been through that once and that was enough! When this little company that I was invested in announced their convertible debentures, I said "Ah, whatever". Then they announced that they wanted to increase their outstanding shares, and I thought "WOW, they must be expecting GREAT THINGS!" It was great all right! I rode that S.O.B. from $1.27 to 1/4 and finally dumped it at a $67,000.00 loss when they announced a 1-for-10 reverse split to UNDO the increase in shares that they did previously! Since the reverse split, which took the price back up to $2.50, it dropped back down to 1/4 again and the company got delisted. Now after trading on the pink sheets for a few months, they're back on the OTC. I think Ray Reub knows who I'm talking about. I'm not saying that any of this will happen to GMGC BY ANY MEANS, simply relating a BAD experience with another company that did convertible debentures. These deals can be the kiss of death to not only the company, but their shareholders as well. They have been called "a deal with the Devil" and there's a good reason for it. When I 1st heard of GMGC's convertibles, I still held a while. When I heard of the special meeting to "increase shares", that was strike 2 and I was out of here at $6 with a slight profit. You don't get 3 strikes anymore with me. Shame really, I had the same faith here as I did with that unmentionable company. Like I said, hopefully GMGC can overcome this, but it sure looks like the same thing is happening here. Sorry I can't offer a prettier picture. That's up to the company if they can. All I can say is to set a downside limit that you're comfortable with and stick to it. I'd rather chase something up than ride it down any day.
Best of luck to all,
VIPER-------< |
