InvestorsHub Logo
Followers 39
Posts 707
Boards Moderated 0
Alias Born 01/10/2006

Re: WOOHOO post# 161657

Thursday, 05/04/2006 12:43:29 PM

Thursday, May 04, 2006 12:43:29 PM

Post# of 286376
Re: WOOHOOGZFX, Pm me your e-mail address. I will gladly provide examples via e-mail. Not going to clutter the GZFX board with other stock symbols. Happy to e-mail and discuss with you off the board.

Remember, what you are reading is standard public debenture language. This portion is the same for most CD's.

What is not standard is the portion in the filings allowing the Private Placement company (Golden Gate) to Short Sell GZFX. JF made a huge mistake in allowing this portion to remain in the deal with GG. Plenty of companies take the clause out for obvious reasons. Why allow the company providing you financing to also Sell Short the same position? A conflict of interest in controlling the price.

The PP company verbiage for Shorting is much different than the standard public shorting language.

The Private Placement company now can hedge their bet in each direction. Not letting them Short Sell would have only given them one direction to make money. Now, GGI makes a fortune trading a GZFX spread.

* Plenty of articles on this type of financing on a Google search. Also try PIPE financing to see how that works. It goes into Private Placements and stock manipulation.

It places downward pressure on the price. imo.