Replies to post #122389 on DD Support Board and Research Team

[236T568]

Huh?

do you seriously not understand that when the convertible debt is converted at deep discounts to the market it is still held by the toxic lender in the form of common stock and not until the common stock is sold into the market does it affect the downward movement of the stock price?

so the Deep Discount Death Spiral Convertible Debt could be long gone but the downward pressure in the stock price is still going on much later

and sorry, but legit companies do not, under any circumstance, take on Deep Discount Death Spiral Convertible Toxic Debt.

THe drop in price had nothing to do with 60% - the 60% was long GONE by the time the price dropped, as the company had reported $800k in profits. Know of what you speak.

Yes, they have several typos - very careless of them. It's a red flag, as is the 60%. I didn't invest with any seriousness when they still had the 60% in effect. Sometimes 'scam' is just too convenient a label. Very legit companies take on convertible debt at times too. It's foolish but sometimes is the best they can do.

[1manband]

Very legit companies take on convertible debt at times too

Convertible debt at a fixed conversion price, yes. Floorless convertible debt, also known as "toxic death spiral" debt, NO. NO, THEY DO NOT.

You can conceive of as many conspiracy theories as you like, but the answer is right in front of you. Toxic convertible debt. Any company that issues it will die. Guaranteed, 100%. If that is the only financing available to them, it is already over and the insiders are just taking the money to enrich themselves before the Company dies. No company can survive, much less grow, by handing out an unlimited number of shares at a 40-80% discount from the current market price. Not one. The cycle of issuance and selling drives the stock price lower and lower, which results in more shares being issued, which drives the price lower even faster. Until the stock eventually can no longer reverse split itself out of the hole, and no conventional financing is available once they issue their first floorless note. Thus, toxic convertible death spiral.

There is no conspiracy among MM's or message board posters. It is the insider's fault by issuing toxic death spirals. Oh, and "investors" faults for not doing their DD and actually buying any POS stock that has issued them. They have no one to blame but themselves for that. People need to stop stupidly throwing their money away enriching no one but the insiders and toxic funders. It is really that simple.