Quote:
Originally Posted by AsianDivaGirlsWebDude
A name change, not making any money, a lot of debt: If that description sounds like a recipe for a dicey online date, then investors might want to apply the same principles to the coming week’s IPO of Web-site operator FriendFinder Networks Inc.
FriendFinder, which operates more than a dozen Web sites aimed primarily at people looking for relationships or flings, changed its name 18 months ago from Penthouse Media Group. It isn’t profitable, and until recently was in default on its debt covenants.
It struck a deal in October with its creditors to waive its defaults in exchange for all the money it raises in its initial public offering.
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i've never seen anything so clear and can't understand how other people can see it. Could people really be so stupid to buy stock?
The money "raised" from from the IPO is going to go towards paying some creditors and you would have to be a fool if you didnt think the shareholders wont make a killing on the day it goes ipo. Where does that money come from, people who buy stock. The company is sinking fast even with paying off its debt.
It is so obvious that it is the way for some of those creditors and share holders to cash out on everyone else's dime.
I dont know shit about stocks and ipos but I can see how this one will play out. Previous dealings with these people and stuff penthouse touched, its track record, the way the company conducts itself... oh there is no way people wont be getting screwed big time on this deal... just watch and see. lets bump this thread in 1 year and see what happened.