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Strategies & Market Trends : CAVALRY'S SHORT BUSTERS - MAGIC EIGHTBALLS PICKS -- Ignore unavailable to you. Want to Upgrade?

To: Janice Shell who wrote (1280)	10/25/1998 6:26:00 AM
From: tonto	Respond to of 1637

Hypothetically speaking Janice, you may be right. Except, if one reviews other penny stock deals, the shares are not so heavily discounted for two reasons. 1) It raises less money for the company. 2) The shareholders when reading the filings become irate. Almost makes one think there could be personal gain some how tied into this... Market at the time, $1.50. Discount the shares and ship them out of the country for .25 leaving a $1.25 spread between market and distributed price. (Cannot use purchased price in this scenario because the stock was sent without being paid for.) It appears no one can come up with a logical and valid business reason for shipping all those heavily discounted, unpaid shares out of the country. Naturally I can think of a very GOOD reason why one might--HEY GUYS, we're speaking VERY hypothetically here--want to do this. To raise cash, obviously. Question: To raise cash for whom? <s>