Yes Wally, you are entirely correct about the private placement matters.The company could easily have moved 2+ billion shares to a group of private investors and issued them as debentures or convertibles....even preferreds to be converted at a later date. But at $.04, more than 20 times the trading value back then? Private placements, as you well know are done all the time. But they are Always done at a discount to market value. Never at a premium.
If Berkshire Hathaway had offered such a premium, no doubt they would have people lined up around the block to buy. But Panamersa? Come on?
The facts state that over 5 billion shares changed hands in Q4. Certainly, those who purchased those 2 billion could easily have done so in the open market. After all, the shares were easily available...and cheap. And, those investors could have gone the same direction as American investors and converted them to PDR's...all at the going rates $.002 or so average for the quarter. But, buy a $.002 stock for $.04? And part with $100 million for what is worth no more than $5 million?
Sorry, I just have too much of a problem believing that any investor is that stupid, let alone a large group of them.
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