This 27-Year-Old Made Millions Riding the Death Spirals of Penny Stocks

Banjo said:
Josh Sason profited by lending failing companies money
http://www.bloomberg.com/news/artic...ason-made-millions-from-penny-stock-financing
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I never understand why guys who are treading a fine line between legal/illegal draw attention to themselves by doing articles like that.
Also, who the heck gets a "low six figure loan" from a family friend while trading stocks from his garage?? And while I'm on a roll...who is his mysterious partner who helped finance a $45,000,000 loan????
Sooooooo shady.

Anyone want to give me a line on Sason being in court with the SEC within two years? I'll take 3-1 odds. Surf you want some of that action? :)
 
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Clubber Lang said:
I never understand why guys who are treading a fine line between legal/illegal draw attention to themselves by doing articles like that.
Also, who the heck gets a "low six figure loan" from a family friend while trading stocks from his garage?? And while I'm on a roll...who is his mysterious partner who helped finance a $45,000,000 loan????
Sooooooo shady.

Anyone want to give me a line on Sason being in court with the SEC within two years? I'll take 3-1 odds. Surf you want some of that action? :)
More...


this is the sort of article you read now a days that doesn't give you everything you actually need to know, its also one of those articles thats going to come with one of those updates, like the news story from that high school kid a couple months back who made millions of dollars trading between classes, after a few days they found out it was all false.
 
Clubber Lang said:
I never understand why guys who are treading a fine line between legal/illegal draw attention to themselves by doing articles like that.
Also, who the heck gets a "low six figure loan" from a family friend while trading stocks from his garage?? And while I'm on a roll...who is his mysterious partner who helped finance a $45,000,000 loan????
Sooooooo shady.

Anyone want to give me a line on Sason being in court with the SEC within two years? I'll take 3-1 odds. Surf you want some of that action? :)
More...

sounds like a winner to me! sure
 
“I want to help the company, I really do,” he says. “We never, ever make an investment where we knew our activity in the marketplace would potentially decrease the value of the company. There would be no benefit for us.”
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;)
 
I guess this is a form of almost risk-free arbitrage between a private market (going directly to the company and offering capital in exchange for discounted shares) and then dumping them on the public market.
 
  • Talk about "margin of safety".I must have missed the chaper in Intelligent Investor on Coverts and exchange of debt for equity at a 50 percent discount.
Doesn't there have to be full dislosure even in a private placement? Bare minimum one should know the effects of the dilution on the common.
 
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