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Technology Stocks : ALU - Allou Health & Beauty: Another Web Play -- Ignore unavailable to you. Want to Upgrade?

To: lifeisgood who wrote (283)	3/20/1999 5:33:00 PM
From: Bo Le	Read Replies (1) \| Respond to of 418

Say, Jacob family find a firm Z. Jacob family invest X amount into Z(Jacob don't have to let you know this). Jacob family let Z put Y (Y could be a very small amount because venture captial normally demands at least 1000% return on their money)amount into ALU to take over all interests in f.com (this is called private placement). Z bring f.com to public and f*.com fly to sky. Z makes a lot of money and so Jacob family makes a lot of money because they have money in Z. What ALU common share holders get? Nothing, except that Y amount. What a deal! There are billions of LEGAL ways to steal from ALU shareholders. What I wrote just one simple case. Could be a lot more complicated and non-trivial. I wish it won't happen. But tell me, if you were in Jacob family position, are you going to do that? I think the only thing will make them think twice is the falling stock price of ALU. Just my two cents. BL