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Gold/Mining/Energy : AVL.V - AVALON VENTURES

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To: Elizabeth Andrews who wrote (628)3/27/1998 10:09:00 AM
From: Keith Utz  Read Replies (1) of 1474
 
Elizabeth, a book could be written on how shorts can damage or destroy small natural resource stocks. One of the major problem with shorts is that by driving the stock price down with their ruthless tactics the company can not raise money for exploration or if they do issue more stock at depressed prices their is excessive dilution to current shareholders. Some say they help stabilize stock prices by muting extreme valuations but but they more than offset this benefit by their negetative impacts. Basically they are destroyers of small resource stocks....some may deserve their fate but many are caught up in their web that deserve better. One thing for sure is that its a mistake to under estimate their power.

Keith
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