penny strategy

[artemstreb]

http://www.bloomberg.com/news/artic...ason-made-millions-from-penny-stock-financing

can someone explain this strategy?

 

[just21]

Money is lent to the company for stock, to be issued either now or in the future. The lender sells the shares or short sells immediately as they have an information advantage.

 

[newwurldmn]

He's effectively buying convertible bonds on desperate companies but given his life style and lack of details I'm sure there is something shadier behind it.

 

[wailsplinter]

what is this strategy all about ??? is it about saving a penny ???

 

[blakpacman]

"Come grow with us."

 

[wailsplinter]

whats about this commercial ????