New Colombia Resources Inc fka NEWC

[Potse]

BeradG07...Asher, floorless convertibles.....

Potse I keep hearing that Asher is a scam and is a stock killer. Why do so many companies deal with Asher if its reputation is so bad?

Floorless financing deals are sometimes the only, most "convenient" and quick option left for microcap companies in need of money. The long-term consequences of entering that type of deal often take a backseat when near-term survival/growth of the company is at stake. And I think that is especially the case in the kind of difficult economic environment we have faced for several years now.

Like a number of stocks that we have seen over the years, VSUT is another good example of what happens when a company enters into a floorless deal (devastating share price drop), and then gets rid of the floorless convertibles before the company is completely destroyed (extremely nice share price gains from the bottom).