READ THIS!!! Interesting article sent to me by an invester who is a MAJOR shareholder in THRA!!!
Special Edition Early Alerts
June 11, 2012
In 2005 when we entered the M&A marketplace we identified a niche marketplace for our services, those being a financial engineer and providing IR services to accredited investors only. In other words we would solicit only accredited investors to finance illiquid companies via mezzanine type financing . With the monies invested by the accredited investor the company would use a portion to finance their business activities i.e. buy raw goods to develop and sell products etc. Part of the proceeds would be used to pay our fees and the balance to pay IR awareness companies. These are companies that have large email databases of penny stock plays.
This created a win win scenario. The company would receive the cash it desperately needs to start production, we would make money on the transaction, the “stuck” shareholders of the illiquid company could now sell their shares, and with volume coming in and with share price appreciation, many bought more.
Once the volume started more retail related accredited investors and day traders jumped in creating more volume and an opportunity for the company to grow its shareholder base. This also attracted another kind of animal; the stock short seller and their cronies of stock bashers.
Working from off shore accounts, they set up margin accounts that allowed them to bid whack and walk the stock down to nothing. In the process they made money with the aid of slimy unemployable “work at home” individuals who post dark propaganda and twist any good news the company has in order to suppress the share price for their employers.
We tested on a pilot project base the business model of “IR support for retail buyers”. This is clearly not our forte. We lose our edge our ability to make several phone calls and have a stake holder jump in to offer support. We are refocusing our business model back to IR for accredited investors and working with mezzanine financing on illiquid securities.
We know that many Internet chat boards such as Investors Hub provide refuge to short sellers and bashers for a fee. They also made a nifty little business out of this by charging companies upwards of $1500 per day or a week (whatever they can mooch) to ensure the stock bashers stay away during the “campaign”. Once the campaign is over the stock bashers go to work. The short seller knows that the accredited investor is gone by then and since the cats away, the rats take over!
Maintaining a “campaign” forever is unsustainable. They typically run 1 week to 1 month and typically 2-3 days.
The short seller for example knows that it takes a year or more to build a house furnish it, plant nice flowers etc. He knows that the companies are the same. They take years to build but one good act of vandalism or a good wrecking ball does the job. Unlike you and us who make money on a share price valuation, they make their money from destruction.
Here’s the SEC explanation on short sales
Special Edition Early Alerts
June 11, 2012
In 2005 when we entered the M&A marketplace we identified a niche marketplace for our services, those being a financial engineer and providing IR services to accredited investors only. In other words we would solicit only accredited investors to finance illiquid companies via mezzanine type financing . With the monies invested by the accredited investor the company would use a portion to finance their business activities i.e. buy raw goods to develop and sell products etc. Part of the proceeds would be used to pay our fees and the balance to pay IR awareness companies. These are companies that have large email databases of penny stock plays.
This created a win win scenario. The company would receive the cash it desperately needs to start production, we would make money on the transaction, the “stuck” shareholders of the illiquid company could now sell their shares, and with volume coming in and with share price appreciation, many bought more.
Once the volume started more retail related accredited investors and day traders jumped in creating more volume and an opportunity for the company to grow its shareholder base. This also attracted another kind of animal; the stock short seller and their cronies of stock bashers.
Working from off shore accounts, they set up margin accounts that allowed them to bid whack and walk the stock down to nothing. In the process they made money with the aid of slimy unemployable “work at home” individuals who post dark propaganda and twist any good news the company has in order to suppress the share price for their employers.
We tested on a pilot project base the business model of “IR support for retail buyers”. This is clearly not our forte. We lose our edge our ability to make several phone calls and have a stake holder jump in to offer support. We are refocusing our business model back to IR for accredited investors and working with mezzanine financing on illiquid securities.
We know that many Internet chat boards such as Investors Hub provide refuge to short sellers and bashers for a fee. They also made a nifty little business out of this by charging companies upwards of $1500 per day or a week (whatever they can mooch) to ensure the stock bashers stay away during the “campaign”. Once the campaign is over the stock bashers go to work. The short seller knows that the accredited investor is gone by then and since the cats away, the rats take over!
Maintaining a “campaign” forever is unsustainable. They typically run 1 week to 1 month and typically 2-3 days.
The short seller for example knows that it takes a year or more to build a house furnish it, plant nice flowers etc. He knows that the companies are the same. They take years to build but one good act of vandalism or a good wrecking ball does the job. Unlike you and us who make money on a share price valuation, they make their money from destruction.
Here’s the SEC explanation on short sales
