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Stocks P / Peregrine Systems Inc.


Subject:  Re: Nelson Date:  7/10/2002  10:31 AM
Author:  NorthCarolinaKen Number:  724 of 725

"a big investor like this can come in with cash and force the value of the stock to zero sucking up all the valuation for himself.

Can you explain this?


There are themes, fugues and variations on this but basically the investor puts in his money and stock is issued to him so that he now owns, say, 90% of the business. The public common then takes a 90% hit to the downside. XO Communications and Wyndom are historical examples if you want to look a little deeper into it.

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