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Gold/Mining/Energy : Harken Energy Corporation (HEC) -- Ignore unavailable to you. Want to Upgrade?

To: Gator II who wrote (3077)	7/1/1998 9:19:00 AM
From: Zeev Hed	Respond to of 5504

The question is what do you mean by success. Arakis saved its corporate life with floorless financing, but the original holders were diluted by a factor of 4. Others like CAFE, EXSO, CTYS, CHTL, AIPN, TTRIF all so the stock go down by at least 70%, some to oblivion. Of course in each case there were corporate weaknesses that added to the presence of the floorless in helping the stocks' demise. But the fact one has to concentrate on is that unless there are intrinsic financial problems with a company, they do not need to go the route of floorless financing. Thus, to me at least, the presence of floorless financing is a major indication of corporate weakness, so great, that money men are not willing to invest, or lend money to such entities unless they can see an immediate way to get their money back (by, for instance shorting against the block). Zeev