SFH - Can you say more about how the electronic system would help?
I'm interested. I'd like to hear more.
As I understand the electronic system, and I'm no expert, the benefits would be:
1. More traders, and MM's could execute orders through SOES, Island, DOT, and the other electronic systems.
2. With more traders involved (although they would still be going through the existing MM's), the B/A spread might narrow.
3. With more traders able to see what's happening, the MM's might not have such tight control over setting the B/A spread.
4. Some investors might be more willing to buy shares on the electronic-bb instead of the pink sheets.
One of the problems with the electronic system, which Hans B. explained at the meeting, is that even on the electronic system, those shares which end with an 'F', for 'foreign' only get twice daily quote updates. I imagine that a broker or trader with a small order entry system, like SOES, would get current information, though I'm not sure about that.
Another problem with the electronic-bb apparently is that it is easier for the shorts to bypass the MM's and arrange bigger covering trades. It might also be easier for the shorts to manipulate the electronic-bb. Certainly the Canadian Dealer Network is a playground for shorts. Right now, on the pink sheets, at least the shorts have to work and pay up for the shares they want to cover.
I'm curious to hear how the members of your group think about this.
Personally, I'm looking forward to the day when Sungold can get on to a regulated exchange, either the Nasdaq SmallCap, or the National Market. The National Market will be possible when Sungold gets the go-ahead for Richmond Downs from the Richmond City Council and the BC Gov't., and puts $35 million in the treasury from TAC Investments.
In the meantime, if there's a better way to go about it, I'd like to hear more before approaching the company. Without knowing more, I'd be inclined to think that the guys at Sungold have already figured this out the best they can for everyone's advantage. As I see it, they also stand to gain most by a healthy increase in the share price. |
