Replies to post #3490 on Hop-On Inc (HPNN)

[dixiecats]

Thanks, Wis... This practice, though a 'quick' souce of cash to pay for 'ongoing operations' or 'r&d' would show that hop-on is getting little if any revenue 'from sales' and it would also help to explain why price per share keeps falling despite good news. If 'financiers' are only interested in getting their money back plus alittle more for profit, then their 'asking price' will probably ALWAYS BE 'at market' or at market 'plus .0001' more and they are probably dealing in MANY millions of shares which would in effect keep the pps down to a certain level..... 'factoring' is a term I haven't heard in awhile and is a great analogy to show what may be happening with hop-on shares. Thanks again..... dix....

[sidehill lie]

To compare what HPON is doing to factoring is very disingenuous.

In factoring, no one is hurt. The factor assumes some risk, and buys debt at a discount to compensate him for the risk. The company is giving up part of its receivables in exchange for immediate liquidity. The debtor just pays the factor instead of the company. Everybody is happy.

What HPON is doing is very different. By selling mass quantities of stock below market value, they are enabling the "factor" to flood the market and still profit, while the existing shareholders see their holdings decline in value. The corporate officers are happy, the "factor" is happy, but the stockholders are poorer, and not very happy.