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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (26494)	4/7/2007 6:18:10 PM
From: gcrispin	Read Replies (1) \| Respond to of 78744

"I have personally followed insiders into situations where the company subsequently went bankrupt, it turned out that although investor relations denied it to me at the time, the insiders had borrowed money from the company to purchase stock, and those loans were subsequently forgiven by the company so I am more skeptical now." I believe this practice has been prohibited by the Sarbanes-Oxley ban on loans. Please correct me if I am wrong.

To: Madharry who wrote (26494)	4/7/2007 6:42:43 PM
From: Spekulatius	Respond to of 78744

AHM is a financial company as such works with other peoples money. Because of that it depends on those other peoples trust in order to keep operating. Loosing this trust (or creditworthiness) for whatever reason right or wrong means that a financial company cannot operate any more the way it used to. That's the reason why i do not invest in financial companies in crisis any more, with the exception that they are too big to fail. I take my chances ten times more likely with an industrial/retail operation which is way less imperiled by the perception of it's creditors.