Replies to post #358528 on Green Energy Enterprises Inc. (GYOG)

[eddy2]

You can't by the corporate act of 1940 sell nothing. You can sell 3% above the value stated by the collateral and sell short by any amount set out in the corporate act of 1940

Now as was mentioned you can prepay for many items and sell the equity in these items of prepayment but that does not mean the value will hold as mentioned or if you like to say was the money well spent.


But again if the outstanding share accounts can go up and they can reverse the share there must be revenue coming in to allow this to take place.

Buying inventory be it equity or goods is another example of prepaid goods if inventory goes down along with administration and sales as well income tax and outstanding shares and cash falls as well along with debt being staying steddy or climbing then that would be of a great concern.

[eddy2]

Piggy backing and how it works. The company will buy equity of another company with share holders funds when comodity priced are high then sell short into another entity controlled by insiders once the comodity priced are low due noted in the fall of asset values and the rise of outstanding shares that is a small fraction of the original worth of the assets in question.

There is no transfer of cash as this is a debt to the new entity, interest rates will rise forcing down administration and sales costs that is front load payment for capital borrowed at a discount taking on a higher charge for the time period the capital was borrowed.

So you see time was sold for capital from a period of low interest rates and little time offered to hold the capital.

Time is money and this can be future earnings to offset low comodity prices often referred to as hedging.