Canadian Oil & Gas Companies Message Board

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Gold/Mining/Energy : Canadian Oil & Gas Companies

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To: Richard Saunders who wrote (679)	10/28/1996 6:27:00 AM
From: Kerm Yerman	of 24925

Richard / Illiquid Trading A heck of a question. In valuation, I've always believed the last trade is fair evaluation. Most institutions, I believe base value on the bid price. I know brokerages value stocks of investors at bid prices. I own shares in a very small public company, High Point Energy. There are only 5 million shares outstanding. Of this amount, Olympic Energy (another small public co. on TSE) owns 65% of the total shares. Insiders (officers, directors and family friends) own roughly another 20% of total shares. I figure there is just a little more than 1 million free trading shares. Nobody wants to sell, thus there has been very little trading in the shares. Shares were valued @ $0.60/share. The stock was dormat for almost 2 months and then, 500 shares were sold at $0.22 and then a similar trade occurred thereafter. Someone had a bid to buy at this level and someone agreed to sell. Now, should I worry about this being a $0.22 or still a $0.60 per share stock. These were $100.00 transactions. I am worried. Current bid $0.22 and ask $0.60. What really gets my goat, I listed this company as one of the TOP 20 specutive penny stock buys and it looks like it is being flushed down the toilet. Even more, I had decided to replace the company in the list because of lack of trading, and the day I decided to announce it, was the day of one of those low trades. More on this later.

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