Bre-X - Is it a good buy at these levels ? Message Board

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Gold/Mining/Energy : Bre-X - Is it a good buy at these levels ?

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To: vinod Khurana who wrote (5)	4/2/1997 2:16:00 PM
From: vinod Khurana	of 75

Bre-X trading volume crashes TSE computers Bre-X frenzy pushes shares higher again Tighter rules urged for miners By SANDRA RUBIN and TERRY WEBER The Financial Post The Toronto Stock Exchange was paralyzed for almost an hour yesterday after a frenzy of trading in Bre-X Minerals Ltd. again caused a crash in its outdated computerized trading system. Canada's largest exchange had ordered the resumption of trading over Bre-X's objections. Investors jumped on the opportunity, sending stock in the tiny Calgary-based exploration company (BXM/tse) shooting up $1.35 to $3.85 in 22 minutes, with 7.8 million shares changing hands. That was enough to overload the TSE's 20-year-old system. "It's like turning all the lights in the city of Toronto on at one time," said TSE president Rowland Fleming. "You're going to blow a fuse." Experts had the TSE up and running again in about 45 minutes -- but Bre-X remained halted all day. It was supposed to have been the first full day of trading since U.S. resource giant Freeport-McMoRan Copper & Gold Co. Inc. made the stunning claim last Wednesday that a preliminary look at Bre-X's fabled Busang gold find in Indonesia showed "insignificant" amounts of gold. "The fact that it busted up the computer is disappointing, there's no doubt about that," said Fred Ketchen, chief equities trader at ScotiaMcLeod. "But keep in mind that Bre-X was available for trading both in Montreal and in Calgary. That's where our orders were being put. So nobody's being disenfranchised." The spillover nearly swamped the Montreal Exchange, which closed 10 minutes early to cope with the additional business. "Trading in Bre-X represented 31% of our daily volume," said spokeswoman Marie-France Cardin moments after the session ended. "We're talking 9.89 million shares. "We had 18,835 transactions. Our usual daily transactions are about 7,400." It was much the same story on the Alberta Stock Exchange, where 6.23 million Bre-X shares changed hands -- a third of the day's volume. The TSE said it doesn't foresee any problems with Bre-X today because the stock was scheduled to open at the start of the session. Fleming said yesterday's crash was triggered because trading opened at 10:30 a.m. with a backlog of about 4,500 orders -- compared with an average of 200 to 300. V.K

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