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private_wealth

05/14/10 10:58 AM

#64181 RE: Trav G #64180

I saw the same logic all over the THRR board. You need to make sure you are accurately pricing the "risk",
You are buying the common shares of a company that does not allow you to vote them and currently has zero cash flow, and liabilities far exceeding their balance sheet assets, looking for a significant amount of financing. Does that sound like a good investment to you?

For a very very healthy return? Absolutely. Not sit back and think about who is going to be making the money, will it be the new investor (taking all the risk) or you???

ALL of the old investorshave already lost all their money. This company needs to be recapitalized - in a recapitilization, the new investor takes all the risk, and thus takes all the return. You are left holding an empty bag.

Think it through.