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Technology Stocks : p-com (pcms) -- Ignore unavailable to you. Want to Upgrade?

To: Rob L. who wrote (916)	1/3/1999 6:13:00 PM
From: Dan O	Read Replies (1) \| Respond to of 1461

I may be wrong, but I don't think it is illegal to provide this kind of financing and then short the stock. Its certainly NOT good for common shareholders, but not illegal. The suspicion you see on a lot of boards is that the financing party might be tempted to HELP the stock price fall through rumor and manipulation (which would be illegal). I wouldn't call these guys bandits yet. I have no reason to doubt the ethics of the financing parties in this case as I don't know them. It is, however, not in the shareholders best interests for financing to be done in such a way as would tempt the financing party to manipulate (even if the financing party has no intention of doing it). It is always best to have financing parties whose interests are aligned with (even if in priority to) common shareholders. You don't want them wishing for one price move while you are wishing for another - the TEMPTATION to help the price drop is too strong for some. One man's opinion.