RE: 424B3 + klaattuu, why does this make you
posted on
Apr 15, 2005 10:06PM
OG -
Check out the last paragraph in the investopedia link... The part about how stock prices decline when a fund entity hold a PIPE block of shares exits...
``PIPEs aren`t generally looked upon favorably by investors because these transactions are often made by hedge funds. Generally speaking, a hedge fund is looking to make a quick buck on its PIPE transactions, and often when it exits the position (sells the stock), the hedge fund causes a significant decline in the price of the shares held by other investors.``
It`s just a gut reaction... When I look at how e.digital`s share price moves around occaisionally for no particular reason I just wonder how many times this sort of thing has happened or what the effect might be to someone dumping 10M shares in a short period of time...
-F