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Microcap & Penny Stocks : Innotelco Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Hans Smedema who wrote (16)	5/25/2005 9:31:57 PM
From: Richard Mazzarella	Read Replies (2) \| Respond to of 136

Hi Hans, I think what happened is that someone or group had convertible bonds (Reg S) where they can convert the value of their holdings into stock. The game works like this. I buy the company bond that lets me convert the face value or any part of the bond into stock. To make sure I get lots of stock, I begin to short the stock to drive the price down. I then convert some of my bond to get stock to pay back what stock I borrowed for shorting. I then short some more and convert more. Starting with a mere $20k investment, I could end up owning the company after all the shorting and converting. Most of the time, that greed ends up killing the company because it can no longer raise funds by selling stock, the available stock is all gone up to the maximum allowed. The creeps win, the company ends belly up. Oh goodie! Regards, Richard