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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?


To: Wendisman who wrote (8963)7/2/1999 8:48:00 AM
From: Rande Is  Respond to of 57584
 
Wes, why can't these companies find conventional financing??

Very good question. . .I think they could if they wished. . . but when a group of big investors say to the CEO. .."forget about banks, and all that money you have to pay out each month" . . . ."all we want is stock and we'll give you whatever amount you need." . . . it must be hard for the CEOs to resist.

Now are there any statisticians in the group? Can anyone compute the odds of ALL of our SAMS announcing private financing within 3 months of our adding them?

Another interesting study would be this. . . .from the day they were added to our SAM list. . . .what is the average length of time until they struck a private financing deal with this mysterious group of "accredited investors" or whatever offshore group under the various names???

Better yet, what is the average difference between those very lengths of time?? Seems like about one week.

Next question. . . what can we do. . .when we declare a SAM. . .to thwart off such investors? How about taking above statistics, along with results of convertible debenture stock performance stats and writing a letter to CEO? Or how about telling CEO that if they need money, we will do our OWN private financing of the company. .. . . heck, we are going to buy huge amounts of stock over time at the market price. . . . . why not cut a private deal and just buy it at a discount, like the big boys do?

If enough such groups as ours, were to make such offers, it would dilute the market to an extent. . . or at least expose those that just want to short the stock down to nothing before converting on a floorless situation. . . .

How about a website we could direct our CEOs??? . . .Offshore Placement of Convertible Debentures. . . . The Kiss of Death to a Growing Company. . . .which could be set up to demonstrate the destruction to the stock price after signing floorless deals. . .or how to recognize a floorless deal when offered. . .why don't they teach such things to M.B.A.s???? . . . then show how a promising company under accumulation. . .does not need to go that route. . .and list the alternatives. . . .with appropriate links. Whadyasay?

I like that one. Anyone could do it.

To answer your implied question. . .we play wait and see . . . until the filing is released. . . then re-evaluate.

Rande Is