To: Maryann M who wrote (23453 ) 4/3/1999 11:06:00 AM From: Zeev Hed Read Replies (3) | Respond to of 44908
Maryann, while I do not think that the question "why are they here" is really relevant, I can explain very simply why I posted here. One of the posters mentioned a post I wrote long time ago on the issue of floorless financing (you can find that post on SI's floorless thread.) Floorless financing has concerned me since the days more than two years ago when it occurred in a stock I started following (AKSEF). As a matter of fact the term floorless financing was coined by me. The issue of floorless financing is not specific to TSIG, it is draining billions of dollars from unsuspecting investors and I have spent an appreciable amount of time on that issue, eventually, the SEC will or should, find a way to outlaw this financial instrument. In the last 30 months, I have warned many holders of stocks in companies that have issued such instruments of the dire consequences these might have. I felt it my civic duty to do that. I can list more than 20 companies that have been decimated in the process and the stockholders left holding equity worth between 1/4 to 1/100 of their original investments at the time I sounded the warnings. As for the comment about IPMCF, I wonder why the author of that ridiculous post did not mention that I was absolutely right about IPMCF, and this company is now bankrupt with many of my cyberfriends holding the bag. Some like many on this thread, were quite upset by my posts, some finally heeded and managed to salvage some of their investment. They are very good cyberfriends by now. If you are really interested in the outcome of floorless financing, go and see the history of companies like CAFE (less than 1/100), EXSO (less than 1/100), CTYS (bankrupt), AKSEF (acquired at the end under BV), IELSF (essentially bankrupt), HEC (worth 1/4 and the bleeding was stopped only after they acquired back the floorless issue), RNTK (worth 1/6 and going), TTRIF (worth 1/25 of the former value and still going), GATE (now finally recovering after the floorless was taken out, but it went from 6 or so to .5 before the floorless was taken out). I have still to see a case were the outcome after the issuance of a floorless instrument was positive. One company, VLNC, might have a positive outcome, and there the floorless issue was "renegotiated" for the time being (it is pending as a future time bomb to come down on July 27, if they do not ship some substantial amount of product out). When you see the field of corporate carcasses that the floorless bandits have left stockholders with, you have a civic responsibility to post a warning to that effect. Fortunately enough, that responsibility ceases in the face of verbal abuse from stock touters and other shills. The issuance of a floorless financing tool is often the beginning of a massive decline in stock holders value followed by reverse splits and massive dilution. You may also want to review a recent article that appeared in the Law Review:ljx.com Respectfully yours, Zeev