4 ms·
From what I see he didn't "lose" $1M. He invested $100K which at one point was worth $1M.
by jamespo 10y ago
From what I see he didn't "lose" $1M. He invested $100K which at one point was worth $1M.
- sbjustin 10y agoYeah. Title is misleading.
- mholmes680 10y agoI agree... he's in the green on a penny stock if the number in the article of $1.3M is correct; he should be jumping for joy. I assume there's more to the story in part 2 which i will wait for, but so far I have no sympathy or lesson-learned to match the title.
- manarth 10y agoDiIorio recalls it peaking at $3.50 by September 2006, giving his holdings a value of around $1.3 million. the stock plummeted from $3.50 to $0.06 a share within two months. So by the end of part 1, he's down to $22k.
- radarsat1 10y ago> at one point was worth $1M. which isn't even true if you can't sell it. If you can't sell it, it's worth "$0". I actually don't understand what the article describes, this "lock-out" period. Is it actually a common thing? Isn't the stock price set by people willing to buy? If it can't be sold, how can there be a price?
- misja111 10y agoThis lock-out period is something you can subscribe for voluntarily. It is mostly done for company founders whose company goes to the stock exchange; you don't want them to immediately sell all their shares because they would flood the market. In this case the author got a better deal for the conversion of his shares, for which he was apparently willing to lock up his position. That's why I don't understand the author's surprise that the stock price was moving after the reverse split. Of course there were other parties which didn't sign such a deal.
- mholmes680 10y agoI don't know about common, but its a thing - likely because of the "preferred shares" class. This guy doesn't seem too big on reading the fine print: invests in Penny stocks and doesn't realize risk? Invests $100k without finding out details? Doesn't know what preferred shares are? Figured 1:1000 (public deal) and 1:30 / 3:1 (his deal) was exactly the same?
- misja111 10y agoAlso he could have walked away with a big profit if he hadn't gone along with the 'advantageous' deal for big shareholders which also happened to lock up his position.
- mdorazio 10y agoExactly. We have no idea if he even lost anything. Using the number of BTVL shares he says he ended up with, times the lowest reported share price in the article, he should still have had over $22k unless something else happened the article isn't covering.