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Strategies & Market Trends : Resource America (REXI) -- Ignore unavailable to you. Want to Upgrade?

To: Boom Dog who wrote (180)	10/10/1998 2:40:00 PM
From: Mama Bear	Respond to of 220

" The value of all the shares he holds are only going to get nailed long term if there is a scam acquisition offer, and any of his sales have to be reported to the SEC." Boom Dog, one of the mistakes that investors make when it come to scam companies is to assume that insiders will comply with the law regarding disclosure of share sales to the SEC. I'm not sure why one would assume that someone who is crooked would engage in other fraudulent activity, but would not break this particular law. If one can reasonably deduce that management would engage in hanky panky in other areas, one would not be reasonable in assuming that they would be honest and above board when it comes to getting paid for that activity. Aside from outright law breaking, there are a couple of other ways for the less than scrupulous to liquidate their holdings. John Rendall of Solv Ex pledged his insider holdings for a margin loan. When the price of the stock fell, his holdings were sold off by the broker. He was then able to squawk and bluster about how the short sellers had ripped him off, while pocketing 7 figures. His holdings would be worth a fraction of what he collected today. There is also this company, they offer loans on equity that never need be repaid: firstsecuritycapital.com Please note that I am speaking in general, and the above statements are in no way meant to imply or cause others to infer that I have any knowledge that any insiders of REXI have broken or intend to break any laws, or that they have liquidated or intend to liquidate holdings that have not been reported to the public. Barb