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retiredtech

01/26/17 9:09 PM

#9151 RE: tigerpac #9150

Took my small profits and opted out. Good luck.
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PRmaniac

01/27/17 8:06 AM

#9153 RE: tigerpac #9150

toxic financing is not really an "investment", but a company may try to spin it as one. I'm guessing it is convertibles.

as long as the toxic financier like Kramer gets 40-45% discount and can dump the dilutive shares immediately, a company like this will dump shares as fast as they can to stay afloat.

As the share price tanks, even more shares need to be issued for that same $1 of toxic financing. Often each tranche grows exponentially.

Soon, an investor's percentage ownership of the share pool drops too a tiny fraction of what it once was.