these finance deals are so easy. We should set up a syndicate ourselves and get into it.
10 of us borrow $50,000 from the bank, that gives us $500,000. We lend it to dye and get $500,000 bucks worth of shares at 20% discount to market. We immediately flog the shares at market to get our cash back. So we drive the price down, but still get an average price above our cost. So say we make 10% on our $500,000 that month. Next month, we do the same again - with the same $500,000.
If fact we do it every month for 24 months. So, it looks like we invested $12 mill. Truth is we invested nothing. We provides a revolving $500,000 line credit. We had limited risks, made bucket loads and trashed the share price. C'est la vie in the big world of money making.
Dye is not the only small cap to sign up to one of these deals. Others have suffered badly too. QHL did. WH Soul's eventually got jack of the damage it did to its investment and underwrote a capital raising to banish the rogues.
With no revenue on the horizon, DYE is easy prey. Despite being closer to market than every before, it is difficult to see the share price going any way other than south for the time being.
Speculative stocks haven't got a hope in hell when there are so many good businesses trading at lows.
Add to My Watchlist
What is My Watchlist?