Day trading in Canada Message Board

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Gold/Mining/Energy : Day trading in Canada

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To: Kevin Hamlin who wrote (803)	10/10/1998 1:48:00 PM
From: keith massey	Read Replies (1) of 4467

The company has secured a commitment for the private placement of 4 million units at 20 cents. I was wondering if anyone had any insight to a question of mine. I know that companies can arrange for large private placements at X% lower than the average selling price over a set number of days (depends on the exchange for exact numbers). These P.P need approval from the given exchange before they go through. Sometimes you see these private placements go through as large cross, as in the case of UBS, and sometimes they never show up on the board. I have always thought that companies hold down the price of their stocks to set up cheap private placements for investors or for setting company options. However I know that companies can cross P.P to an investor without manipulating the price down to the level at which the P.P was made. So why did the do it for UBS??????? In regards to one day price manipulation on penny stocks. I find it hard to benifit from one day price manipulations for stock crosses on most stocks. I have watch lots of these crosses go through in real time. The house waits until there is very little resistance - in one quick action they knock all bids down to the cross price and cross a large block. However the next trade after the block is crossed is normally at the price that the manipulation started at. Unless you are one of the lucky few who had the foresite to put in a low ball bid you can't buy cheap stock. The movement of stocks in the weeks after a large cross has gone through is fairly random in nature in my opinion. I have seen just as many stocks go up after a large cross as I have seen go down. However you do normally see a jump in price the second day after the cross. I blame this second day rise on end of the day T.A charters who see this type of stock action as a bottom for the stock and a buy signal. It may or may not be a buy signal in my opinion. Just my two cents Best Regards KEITH

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