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Technology Stocks : Audio and Radio on the Internet- NAVR
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To: Urlman who wrote (104)7/9/1998 2:50:00 PM
From: simarx  Read Replies (1) of 27722
 
The press release also give the private placement access to a large amount of Warrants. That opens the stock up to large short positions that can arbitrage against the Warrants. We need to be very careful to handle this as a long-term investment. A close look at the charts shows the behaviour of the price after the last "Internet" run. Now we have to contend with all that extra paper which was freed up on June 30. The average price for each converted preferred is $2.70 (5 Commons for each 13.50 preffered.)

That pulls the support from underneath us. While we made a lot of money today, this game made a lot more money for private placement people. I am afraid that anyone holding this as a long-term investment, will have to wait for all those new shares to be absorbed. They are too cheap to help us maintain this run. A professional would look at these numbers and start shorting even at 8. When the volume dries up, hitting the few buyers with short sales will drive the price down. Then those wanting to protect their profits will start selling too.

Do you see the scenerio and why the MM's run a momentum play up so fast. There is a lot of money to made on the down-side. And sadly, NAVR poor PP is going to help the shorts.

simarx@yahoo.com

PS Here is the link to the PP press release.
biz.yahoo.com
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