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Re: learningasitgoes post# 19417

Tuesday, 03/31/2009 10:07:13 AM

Tuesday, March 31, 2009 10:07:13 AM

Post# of 41474
Whenever there is toxic financing or a company pays huge number of shares for stock promotion, there always seems to be downward pressure. They don't call it toxic death spiral financing without good reason. The financeers get shares at a steep discount to the average share price, but must sell as fast as they can before the stock price drops below their profit margin point. This puts on even more downward pressure and as the stock price falls, HRNF has to dump even more shares to get the same dollar in toxic financing.

The stock promoters have no intention of holding, because they often know the company has little or no cash.

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