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Gold/Mining/Energy : Medinah Mining Inc. (MDHM)
MDMN 0.000001000-99.0%Jun 3 1:07 PM EST
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To: Ronald A. Rosano who wrote (16356)6/30/1999 10:22:00 AM
From: Ronald A. Rosano  Read Replies (2) of 25548
 
To the thread:

The URL that I posted in my last post is apparently not functioning. In order to avoid a lot of PM's, the information is as follows:

--------------------------------------------------------------------

Here are a few notes regarding my visit to the brokerage house today in order to
expedite having my Medinah Mining Certificates issued in my name (they're in street
name currently). The broker spent at least an hour with me; and here is my recollection
of our lengthy but less than satisfactory conversation:

1. My brokerage does not have a segregated safekeeping account. The broker said if
I request my certs, I take possession of them and my brokerage is out of the picture.

2. The broker says he sees absolutely no reason to do this as our shares are in a cash
account, not a margin account. He said there was no risk factor as my shares are
insured (thus completely covered). He says the brokerage doesn't like to loan shares in
cash accounts out to someone who wants to short shares.

3. He says moving shares around is paper intensive (but soon to be less and less so).
The brokerage currently charges $15 for certification of shares, The price will go
up to $25 on July 1, 1999.

4. He HIGHLY RECOMMENDS THAT I DO NOT mail in my cert request letter
for the following reasons:

a. There is a three BUSINESS days difference between trading day (the day
one orders buying/selling of shares), and the settlement day (the day the
brokers settle up with each other).

b. Brokers no longer will "eat" the costs incurred if certs are not in your
account like they used to do (he says).

c. The brokerage will not allow customers to place either a buy or sell order
for a stock if you have the certs (3-day window to get them in).

d. He says the brokerage provides free safekeeping in cash accounts and he
thinks Medinah Mining is having shareholders go through this for their
own benefit. He says this places the burden for safekeeping upon the
shareholder. He adds he sees no benefit for the shareholder in doing this as
he says it will not bring stock prices up. He says interest rates, the price of
gold, and a company's earnings is what drives a stock's price/changes.

e. He feels that the company wants their customers to do all the legwork
acquiring certificates to enable them to get a handle on the short
position. He says this benefits the company/and is not in the best
interests of their customers in today's market world. He said that
customers buy stock from the company - it is not their job to do the leg

work. (His Opinion)

5. He reiterated that I should not be worried about the shares being shorted as my
shares are in free safekeeping cash account.

(He says individuals will short shares if they think a stock will drop in price,
but will be forced to cover if it rises, which is what seems to be happening now)


Hope this helps.

Best regards,

Carol
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