SI
SI
discoversearch

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.
Microcap & Penny Stocks : JAWS Technologies - NASDAQ (NM):JAWZ -- Ignore unavailable to you. Want to Upgrade?


To: Phantom Dialer who wrote (1353)12/4/1998 9:10:00 PM
From: 24karats  Read Replies (1) | Respond to of 3086
 
Why did it tank today...i bought a 20 cents monday..dumped wed. for 55 cents...i think this was just a good flip...i suspect most people did that.



To: Phantom Dialer who wrote (1353)12/5/1998 11:01:00 PM
From: Ontopequity  Read Replies (1) | Respond to of 3086
 
Why are you critical of Walters posts? I find them informative, refreshing, and interesting. Speculative investments should be put through the crucible of critical thought. Ridiculing the critics does little to encourage proper due diligence. Walter's concern about the financing plan is certainly valid. Personally, I don't consider the financing plan too much of a negative issue as long as the public can keep informed of any release of shares into the market as they occur. IF this information is unavailable, then JAWS is certainly not a very calculated risk. In speculative investing, the key is to clearly understand the variables as much as possible. If accurate information is available to the public regarding the share structure of JAWS, then that is one of the most important variables that can be understood. Many people are concerned that JAWS will continue to dilute the float by issuing penny stock. Although this concern is valid, it would be to JAWS advantage to issue shares at $ 5.00 rather than at $ .50
in this manner, a $ Million dollars could be raised by issuing a mere 200,000 shares as opposed to issuing 2,000,000 shares. In this manner, management is motivated to act in the best interests of the shareholders. The fact that a pre arranged equity financing facility is in place for future draws, is positive in that JAWS will not be scrambling for resources as the company grows.

The risk here of course is that they will dilute too much, too early, and provide too little information about how much and when.
I was recently cautioned about a certain OTC NASDQ company that they could issue shares to the insiders without informing the public. The person who warned me was the owner of a small brokerage house with years of investment experience. He wouldn't touch the deal because he was not given clear accurate information concerning the share structure.Consider this scenario: The public is left ignorant, but JAWS lenders understand that JAWS requires financing, and so those lenders begin to borrow shares on the open market and then sell them short to the public. This causes the stock price to drop, allowing the lenders to pick up inexpensive stock, as well as cover their short positions.The retail investor only becomes aware of this after the stock price has dropped and the share structure is diluted. By then it is too late. A huge devil that is understood and clearly observable is better than a little devil that is unseen and not under public scrutiny. I certainly appreciate any information on JAWS public reporting requirements, and any other info regarding the share structure / ownership. This is a key point for successful consistent returns in an inconsistent and often manic market. ontopequity.com