DD Support Board and Research Team

[1manband]

Very legit companies take on convertible debt at times too

Convertible debt at a fixed conversion price, yes. Floorless convertible debt, also known as "toxic death spiral" debt, NO. NO, THEY DO NOT.

You can conceive of as many conspiracy theories as you like, but the answer is right in front of you. Toxic convertible debt. Any company that issues it will die. Guaranteed, 100%. If that is the only financing available to them, it is already over and the insiders are just taking the money to enrich themselves before the Company dies. No company can survive, much less grow, by handing out an unlimited number of shares at a 40-80% discount from the current market price. Not one. The cycle of issuance and selling drives the stock price lower and lower, which results in more shares being issued, which drives the price lower even faster. Until the stock eventually can no longer reverse split itself out of the hole, and no conventional financing is available once they issue their first floorless note. Thus, toxic convertible death spiral.

There is no conspiracy among MM's or message board posters. It is the insider's fault by issuing toxic death spirals. Oh, and "investors" faults for not doing their DD and actually buying any POS stock that has issued them. They have no one to blame but themselves for that. People need to stop stupidly throwing their money away enriching no one but the insiders and toxic funders. It is really that simple.