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Gold/Mining/Energy : Signature Brands Ltd.: (SBX:TSE) SGNTF

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To: TERRY McCartan who wrote (717)7/11/1999 11:55:00 AM
From: Syncrude   of 776
 
Terry,

You keep referring to a "squeeze". What "squeeze" are you talking about? Squeeze is usually referred to when talking about short sales which would NOT be impacted by the share consolidation.

Whether or not the selling has finished is hard to tell. The share consolidation may result in people either buying to round up their holdings or selling due to difficulty in assessing where this company is going. It appears that more and more sources of CDs via e-commerce are popping up all over the place. Will margins support the high marketing costs? Remember that being hosted on a web page costs the companies such as CDPlus money, it is not free.

The current market cap would be over $50mm CDN. Will the current operations support this price? Will future profits support a higher price? I think that it is not easy to answer these questions. It may depend on one's time horizon and tolerance to risk.

Now if this were an Internet stock........then again even those are no longer a guarantee of success, there are just so many of them and more are created each day.
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