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

To: xcr600 who wrote (13010)	9/30/1999 8:55:00 PM
From: Frederick Langford	Respond to of 57584

xcr600, That was some excellent dd. I know I am not alone in hoping that more people include the conditions of financing within a company with their stock picks. This issue has a HUGE effect on the price of the stock. There are a few threads on SI that deal with Convertibles, Off Shore financing, and other insidious forms of financing that continues to keep the price from appreciating regardless of the other fundis. It is also a great way to hunt for good short candidates. Rande mentions Zeev Hed, and I certainly agree that Zeev is SI's resident expert. Check out his posts. He has the explanations down to a science. If you are in a stock that does not respond to good news or does not seem to ever reach it's apparent value, check out the financing. Eight of ten times you will find some creative financing that pits shareholders against insiders... Fred <edit> In the very long run, this usually works itself out, if a company is sound with a good biz plan. For IRA LONG termers, 3-5 years, it's just a tough stage, but other than that patient long, I suggest we all look out for this. Unfortunately, some companies can not get necessary operating funds without this kind of financing, however one must recognize this is a near to medium term negative.