Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services -- Ignore unavailable to you. Want to Upgrade?

To: Dick Lee who wrote (20496)	6/7/1998 10:36:00 PM
From: Sigmund	Respond to of 27968

Shares must be issued for "fair" consideration. If not that is a big problem if not even more serious. Imagine if the CEO of a major corporation sold himself some shares at par value. Let's hope that all the additional shares issued were legitimate actions benefiting all of the shareholders. I have no reason to believe that the issuance of shares was anything other than appropriate, but others have raised this issue so I am commenting on the importance of getting this question resolved. Imagine if I own an apartment house and sell you a one-third interest for one third of the fair value of the building. But then I sell myself an additional 50% of my current stock for a nominal amount. Your third is now a quarter. You will receive one fourth of the profits even though you paid one third of the value of the building. I imagine you will be consulting with your attorney if not with the Attorney General. The IRS might be interested also as this appears to be additional compensation. I assume that the audit will show that there was no impropriety. To make sure that that was the case, I further assume that any questionable transactions will be made more appropriate. Having done this it will remove one of the two audit related issues preventing the stock from going up. The other main issue is the confirmation that the reported profits were regular profits rather than one time items. At that time, the risk of owning the shares becomes normal business risk rather than the risks often associated with BB companies.