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Sprycel

06/12/08 6:41 PM

#181335 RE: underdog150 #181333

First, it is illegal to naked short sell stocks in the USA and if you will recall the Manager is in ownership of a Series 7 license therefore making the art of illegal naked short selling stock in the U.S. a federal securities offense. Second, Tom does not have the resources even off shore to meet the margin needs to short through an offshore account. Remember the last reported asset in the SVF was $158,000.00. You really ain't doing much with that. What I do believe this was set up for was for offering the Limited Partnership sales through as Tom had mentioned that as an investment option to support the overall company when established. I think it also goes hand in hand why Tom created the realty company also!
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bradakus

06/12/08 6:42 PM

#181336 RE: underdog150 #181333

I would think the CD holders would be very happy, They have a buyer for the conversions and the shorts have a supply of shares to cover with.


Most experienced mergers and acquisitions professionals would probably agree that buyout funding is much easier to raise that start-up funding. Here's some advice learned the hard way, through years of experience, about raising capital for a business venture. First of all, the absolute hardest capital to raise is for a start-up company. Investors don't like investing in a company with no track record and worst yet no revenues.

Second, look at the odds against you trying to raise capital for a start-up company. Each year literally thousands of newbie entrepreneurs draft business plans and set out in search for venture capital. Very few of these people are actually successful at raising capital for their venture. You also need a very thick skin to handle the emotional toll associated with start-ups.[b/]

Now if these entrepreneurs were to find an existing profitable business instead of trying to start from scratch they would stand a much better chance of raising that capital. Investors have more confidence and face much less risk if they fund an existing business. Also, their is likely some sort of hard asset that can secure the funding. Rather than a pure equity financing, it can even be structured as part debt and part equity, which means the management team can retain more of the equity themselves.[b/]

A little creative thinking can even allow a management team to kill two birds with one stone. Maybe they can't get start-up financing for their business plan, but they might get buyout funding for an existing company. They they can use the profits from that venture to also launch their start-up company, especially if the two companies are somehow inter-related and benefit one another in terms of of sales, marketing or research.




!!!!! WARNING !!!!!
This poster Is subject to sudden outburst's of random thought and opnion with absolute refusal to take SEC rules at face value In no way should U Invest 1 ota of your hard earned money on this post.
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crashman

06/12/08 6:58 PM

#181343 RE: underdog150 #181333

The Seaway valley fund has almost no money left (I think $200k) as of the last report and the Seaway valley fund belongs to SWVC. I doubt (actually I'm pretty sure) they can trade SWVC stock without proper filings.