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Re: Sully post# 7784

Monday, 12/20/2010 9:07:17 AM

Monday, December 20, 2010 9:07:17 AM

Post# of 14920
Sully, what has happened here is rather common in the pinkies/pennies, unfortunately. Before the company or investors make money, the (toxic financing) investment bankers make money, and LOTS of it.

First of all, the moment the IB catches wind that the company needs to raise additional capital, the IB shorts every share they can, knowing they can cover with the shares the company sells them at a discount. At the same time, the lower they can take the pps down, the more discounted shares they can exchange for capital raised. It's a system nicely approved of by our SEC (God bless their greased palms). Then, once the toxic financing has been consummated, the IB will look for ways to elevate the pps, so's to make 5-10-20x their investment.

L~



"took me 3 long years to make a million bucks over night"

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