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Author: NorthCarolinaKen Big red star, 1000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 725  
Subject: Re: Nelson Date: 7/10/2002 10:31 AM
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"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?

HA"

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.

Ken
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