swvc IS a Hedge Fund + a Holding Company...
Perfect for The CEO's background.
Hedge Fund owners make their personal income from
companies that they drive into BK, by driving their
stocks to zero, usually by shorting, and/or causing
them to accumulate overwhelming debt.
They avoid profitable companies, except where they
see an opportunity to quickly 'turn-around' a barely
profitable company, and transform it into a major
money-loser.
The Hedge-Fund Manager always pays himself first, via
bonuses + unearned salaries + 'expenses' , no matter
how much money his 'Fund' + common shareholders lose.
A good Holding Company uses its acquisitions sequentially,
like stepping stones, through a swamp, that keeps getting
deeper + muddier, on purpose. After the initial empty shell
clamps on to its first prey, it stuffs it with debt, to
make it appear bigger. Then, it can start massive dilution
of its common shares, to 'acquire' its next prey. But, Never
with cash [that's Only used for salaries + bonuses]; Only
with more shares. And, since the Holding Company is holding
another company, it can double its Toxic Debt + double
dilute its common shares [which the CEO Never owns, for
obvious reasons, to him, but not to the averaging-downers].
Hedging/Holders grow fastest by preying on companies that
circulate cash quickly [like retail stores], because it
looks like they are bigger than the really are, and it's
easier to get larger loans, and to sell more new shares.
But, there are a few things that Hedging/Holders NEVER Do.
The Never But Back Common Shares, And Never Pay A Cash
Dividend. Although, the sometimes spin-off a totally
debt-overloaded company, that is about to go BK, by printing
new stock for that new company, and giving it to old + long
shareholders, and calling it a 'spin-off-dividend'.
In summary, Real Companies try to make a profit, and minimize
debt, and buy-back their common shares, and pay cash
dividends, and control their costs, and pay reasonable
salaries, and try to grow + survive, for centuries.
While Hedge Funds + Holding Companies do the exact opposite,
but still make big money, and very quickly, but only for a
short time, and only for the 1 guy, that owns 51+% of All
votes, without owning any common shares.
The CEO of swvc really is a genius, with perfect credentials.
extra, Sincerely. But, just IOO, as usual.
