I've heard that before but find it very hard to believe there aren't exceptions when something materially positive has happened with the company. It really doesn't make sense and those guys aren't dummies. But, it may well be that they know that the avg company they lend to is so screwed up and sometimes so crooked that it really is automatic, even though in some cases they could do much better.
Thanks for your thoughts on all of this.
For microcap opportunities in the hot Virtual Reality sector, see my board