an example:
Fred, Russell, Andrew, Urlula, and David go to cash-strapped company PLAYBALL HOLDING CO
ea person loans the company 100K with convertible notes attached at a 40% discount after 6 months
Fred and his buddies quietly accumulate shares at .03 in the company for 6 months and hire a stock promoter
At the designated time, PLAYBALL HOLDING CO puts out a PR driving the SP up
to .10 with the help of the stock promoter
Fred and his buddies sell their accumulated shares for a tidy profit and absolutely bid whack the SP down to .03 in the process
Fred and his buddies now exercise the convertible notes at a 40% discount from .03 ($500,000 divided by .018 equals 27.7M new shares)
rinse/repeat and perfectly legal and no shorting involved
Theoretical physics can prove an elephant can hang from a cliff with its tail tied to a daisy, but use your eyes -- your common sense ----
please DD before you buy or sell
Jimstr
