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Strategies & Market Trends : Floorless Preferred Stock/Debenture -- Ignore unavailable to you. Want to Upgrade?

To: surelock who wrote (868)	8/24/1999 9:01:00 AM
From: Lee Walsh	Respond to of 1438

I thought this would start some interesting discussion... The point is they short probably 800,000 shares on the way down from $2 to .20. to collect probably quite a bit more than the $400,000 debt that the company is still paying them on. The company has no knowledge of what's going on...or by the time they realize it, they are too weak to do anything about it. Then they convert that debt into tons of cheap shares...making the company think they are doing them a favor.....they then basically control the stock... They can do a P&D and unload the shares to momo players who get caught at the top...and you never know when the bottom falls out. Point is, these stocks are highly manipulated....and there is almost always something sinister going on behind the scenes. The shorting against the straight debt, rather than a debenture deal is what I thought made this one different and even more interesting... Small companies really have to be careful where their money comes from...and even when they are careful, sometimes it's out of their hands....such as in this case when the debt was sold. Lee