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Microcap & Penny Stocks : Corporate Vision (CVIA) -- Ignore unavailable to you. Want to Upgrade?

To: Ga Bard who wrote (2234)	3/6/1998 2:15:00 AM
From: D LEE	Read Replies (2) \| Respond to of 6654

TO ALL:[[Reg S]] -informative thread? -------------- GOOD INFORMATION? Subject 15250. There is some very good information about Reg S on several specific S.I. Threads. Perhaps comments on this one above will lead as well to others helping clarify what reg s means to CVIA shareholders. If you find good links, Bring them back for all to read. I remember quite good discussions about 9 months ago from people engaging in the act of bottom fishing in some of the depressed micro cap threads. They made out real well because they recognized and described Reg S. [for example, the first post reads: This brings me to a favorite type of broken stock: the one that has been forced to seek a Reg. S private placement. These offshore private placements are highly unfavorable for existing shareholders. The co. sells convertible preferred or convertible debentures, which convert into common stock at a discount of 8% - 25% from the prevailing market price for the common. This assures the holder a profit, regardless of what the market price does. The convertible typically yields only 5%, which is insignficant, so the holder flips into common as soon as possible, typically within a couple of months of making the deal, then and sells the common immediately, thereby locking in a profit from the discount. This selling of the common stock by the offshore institition can severely depress the stock price. Moreover, it is predictable in its timing, because you can tell from the SEC filings, particularly the S-3 prospectus that must be filed, approximately when the selling will commence. This a predictive capability that is hard to come by in most any other situation. Yet another factor that makes these deals interesting is that firms will only do them as a last resort. So, when you see a new discounted convertible deal, it means the co. was too messed up to raise capital any other way. (I'm not sure if this is the best thread to start with but i hope it helps.) Dave Remember to bring back your finds!!