It is interesting to note that many traders' and p

It is interesting to note that many traders' and posters favorite company TAUG is doing a $5MM equity line. And not a peep. Equity lines require a registration statement with the SEC. They are the most toxic of toxic instruments.... the term "death spiral" emanated from the use of a plethora of Equity Lines of Credit about 10 years ago, which are neither equity nor credit. What they were was death. What they are, are two things, both bad and terrible:

1. They create a situation where the bad guys (and there are no good guys in these transactions) can short against the box, crushing the stock while the SEC is reviewing the registration, each revision of the registration will show a lower and lower offering price as the shorts exact their toll; and

2. a $5 million equity line for a 4 cent stock will create, by my estimate about 2 billion shares after taking into account the crushing the stock will suffer.

But since equity lines are so toxic the company will only receive, by my estimate, $150K (probably less) before the stock goes low sub-penny. And yet, not a peep.

If Berman tried something like this, he would gain no friends from the penny traders. Some traders would again call for his death. Berman would be consigned to he!!.