Ed...
You are going to love who is accumulating JDX. Thought I would save you some time. You can easily go and check all this stuff.
The guy that will be behind JDX's promotion is Carlo Civelli (new director). This secretive Swiss financier has been involved in some of the biggest promotions in Canadian in the past 20 years. His first big mark was made in Vancouver in 1981-82 when him and Doug McRae pushed Breakwater Resources through the roof. Over the years the number of Canadian companies he has ran up is countless (e.g NMR, SLU, AHV, UP, RDL etc.) plus several big U.S names (Intl Cablecasting and Novadigm). The last big promotion connected to Civelli is NIR. Prior to the promotion Mr Civelli's held approximately 2.65 million shares, acquired at 15 to 21 cents including a large private placement at .20 several months before the promotion started. In a period of two months from March to April 1998 Civelli was behind one of the larger promotions on the TSE that year driving NIR's price from .20 to $4.88.
If you go back you will find that Haywood was the house behind most of these promotions and bought at the lows and dumped near the top. The head of Haywood Securities is John Tognetti. Tognetti and Carlo Civelli go way back in the promotion game (even before Haywood) including a huge U.S promotion of Novadigm a couple of years ago and last years promotion of NIR.
If you go back through the records since last June you will find that Haywood has been accumulating since last Nov. and looks to be net over 3 million at this point. This includes a bunch of crosses near the lows
Major Crosses
Haywood
11/03/98 - 172,000 at .48
11/03/98 - 280,000 at .47
11/03/98 - 179,000 at .50
12/07/98 - 208,500 at .49
12/07/98 - 478,500 at .50
During the past month Haywood has been on the buy in a big way. They have bought 280,000 shares bought in the last 17 trading days without a single sell. They have bought shares in 16 out of the last 18 trading session all in relatively small blocks.
Carlo Civelli through his personal account and his main Zurich-based financial company, Clarion Finanz AG have bought 2 million shares in the past 10 months without a single sell and also have 800,000 options (average .75).
Add to this:
JDX has said that 6 million shares are presently been held by several large European Investors in the houses of Royer and Cole. I went back to figure out where these shares came from.
---Back in 1991 Yorkton placed a total of US$5.75 million of 7.5% three year convertible debentures in the company with European investors.
The debenture was first priced at $3.15. In 1994 it was renegotiated for .92U.S with a longer maturity date.
In June 1997 this debenture was converted into 6,414,651 shares of JDX at ~$1.30 a share.
I'll give you a few guess who was working with JDX at the time and is very famous for setting up private placements with large European investors........CARLO CIVELLI
When the shares where converted in June 1997 the price of JDX was $1.20. Since that time the shares have not trade above $1.20.
So we have several very large shareholders connected to Carlo Civelli that have been holding a ton of shares for almost 9 years at a very big loss. When large shareholders hold shares for this many years they are going to expect a very large return on their investment.
Now out of the blue and after being off the board of directors for 7 years Carlo Civelli comes back on board JDX and buys a bunch of shares himself just as JDX announces they are going to go into the tech. sector.
So what does this give us:
Carlo Civelli - 2 million shares
Haywood - connected to Carlo through John Tognetti - 3 million shares
Large European Buyers - clients of Carlo's - 6 million shares
Total: 11 Million
Plus
William Staudt (director) - 2.2 million
Brian Hinchcliff (Prez.) - 2.3 million
None of these insiders have sold a single share in the past 12 months. Mr. Staudt bought all his shares (2.2 Mill) in the past 10 months and Brian Hinchcliff bought these shares above $1 a few years back.
This gives up around 16 million we can trace on paper. I can only guess what we can't trace.
Both Carlo Civelli and William Staudt took down private placement last Jan. for 500,000 and 800,000 shares respectively. These become free trading in Jan.
Regarding the options... Any idea if they have any intentions of re-pricing them?...
I have gone over all the releases in the past 12 years and JDX has never repriced their options, even when they were priced at $3 and the shares dropped below $1 for a couple of years. I have been told that JDX has no intention of re-pricing these options either.
Best Regards
KEITH
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