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.

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

To: MskiHntr who wrote (3428)	8/16/1998 1:08:00 PM
From: jm	Read Replies (1) \| Respond to of 5504

what company?answer-a desperate company not able to obtain financing from anywhere else that to remain operational will use this method or a company management willing to dilute the shareholders equity and sell short to make a profit on the short sell.There are many desperate companies who do this and no they don't tell the shareholders what is going on .Is it ethical?no but it is done everyday by venture capitalist with cooperation of company management and shareholders are still wondering about it.See Zeev for a list of companies recently involved.Oh by the way it also increases the number of shares outstanding as well as lowering the price as well as maintaining the management high salaries-usually shareholders are asked to increase number of shares -shareholders lose big time.Remember management is not working for the benefit of the shareholders in these cases -they are working for themselves and no they do not consider the shareholders the owners and neither do the venture capitalists who could care less that your shares have been diluted.A ugly game for poor small investors caught up in one-hope that is not the case here.