NP says Loewen now a hot penny stock
Loewen Group Inc (The) LWN
Shares issued 74,056,090 Jun 17 close $1.02
Fri 18 Jun 99 In the News
The National Post reports in its Friday, June 18, edition that Loewen Group
has this week found itself reborn as a hot penny stock. The National Post's
Drew Hasselback writes that Loewen stock, which a year ago was trading near
$40, trickled to a record low of 34 cents on Monday. However now the stock
has tripled in value to $1.04 and is trading at incredible volumes. An
equity analyst says he's doesn't understand the market activity on Loewen
stock because usually in bankruptcies the debtors take a haircut and the
equity holder gets zilch. A key push appears to have come from the
disclosure on Monday that one of the company's biggest shareholders, under
the direction of Thomas Taylor, has dumped all its stock, about 7.8 per
cent. With Mr. Taylor's group out, there are fewer big chunks of the stock
flowing into the market at cheap prices. With this big "overhang" out of
the way, there is room for the stock to bounce back. Loewen says it has no
news to report.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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