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Pastimes : Georgia Bard's Corner -- Ignore unavailable to you. Want to Upgrade?


To: Jack of All Trades who wrote (3911)7/20/1998 2:58:00 PM
From: Dusty  Respond to of 9440
 
Jeff, that is what I thought but I was not sure. Thanks, <EOM>



To: Jack of All Trades who wrote (3911)7/20/1998 9:01:00 PM
From: Ga Bard  Read Replies (2) | Respond to of 9440
 
Jeff ... Private offerings have had a shadow cast over them today. Private offering in my opinion serves one extremely important scenario. A Capitalization Strategy where the Company plans to raise capital for a product launch, marketing purposes, further expansion, etc..

Now some novice people think that this is bad because you are not buying on the open market. If you do it you are a shill which is dead wrong. Companies that offer private offering do it hoping to get long term investors not day traders. Also the stock goes directly into a shareholder's account. This means the company is not selling those shares on the open market while employing a PR firm or on-line shill to hype the stock so they can.

Some people on line may buy a private offering and tout it then dump out but no one can control that. Everyone has a right to trade (buy and sell) stock based on what they feel is the present potential. Typically private offering goes into hands of solid investors which is what every company wants. Private offerings do not interest day traders because by the time they get the stock it could have fallen. However some people on line want to say that if you talk about a company you bought a private offering from it means you got stock to promote and you have to fully disclose it. That is also wrong

As Bob so graciously stated today these people have the burden of proof, proving intent, knowledge of wrong doing and so forth. Private offerings are also fully disclosed in the SEC filings also. Now I am not sure about non reporting but in fully reporting companies it will be in the filings. All stock transactions have to be in the filings.

If a company does not want to kill the float does it not make sense to do a private offering to long term investors. Seems private offerings are more advantageous for the company and the shareholders in my opinion.

Maybe I am off base here but that is how I look at private offerings which to me are solid investments. All this which hunting is absurd along with all this character assassinating, but hey, people are people.

GB