Posted by: dayneyus
In reply to: western who wrote msg# 16605
Date:2/6/2007 11:41:57 AM
Post #of 19550
How to screw your public shareholders
A fictional look into the market place.
First I would begin with a great idea, and a publicly traded company. I would pump the idea, as the share price soared I short against all the free stock I gave my self. That means,… say I gave myself half of the outstanding shares, and my broker would then deposit, in my account, in cash, the number of shares short times the share price on the day I shorted against my free shares. Let’s say $2.00 X 10 million shares equals $20,000,000, less of course brokerage fees. The share price tanks and I continue to pump. Now how do I keep a good thing going…. Well I do a reverse split and vaporize the shares I owe, and of course all those public shareholders too, of course mine were free…get it?
Now this idea is a real hook and it is set , but voila, the damned idea can build a real company so what to do. Yea… reverse split, after a due amount of pumping of course, now for the "coup de grace", this needs to be done before any public record showing earnings, and the earnings on this will be huge, investment bankers are beating down my door for a piece of the action, the sweet thing is I can do my part with public money. How you say?..I give my self a controlling interest. I pull another reverse split, in the process I issue myself say 30,000,000 post split shares… for free, yes I immediately short against them for the opening price of $1.50, this is more then half the outstanding shares so the price tanks. But these are restricted shares, you say, it don’t make a slight bit of difference, they are only borrowed, and an unscrupulous broker does not care anyway. Now, let’s take the company private. Those 30,000,000 shares netted me $46,000,000, I partner with some investment bankers and form a take over company. By this time the shareholders are bleeding and will accept chump change or less, a lot of them will even take a loss just to get out! A bunch of them hangout all day on a messageboard and through proxies I feed them misinformation to bring about my plan. The proxies whip up the take over rumors. I have really worn most of them down, but a few are thinking class action so through the proxies I plant a price and a possible concession on those free shares I took. Through my proxies I let them play with a price I‘ll never give them and offer to return some of the free shares. I ‘m greedy so I offer some back…even though I could have hidden the entire amount in the private company, screwing my new partners as well as the public shareholders, but this talk of class action and an investigation calls for a creative smoke screen to slow the mutineers. I can get this thing private in about 40 to 60 days, it’ll hit them so fast they won’t know what happen, above all I got to keep em snowed and wanting chup change, quashing all notions of a class action suit. If they don't take the bait...I’d have to take my $ 46 million and hide from Bubba.
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