SOUTHERNERA (t.SUF) Message Board

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Gold/Mining/Energy : SOUTHERNERA (t.SUF)

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To: gemsearcher who wrote (3075)	4/24/1999 2:11:00 PM
From: Gord Bolton	Read Replies (1) of 7235

quote.yahoo.com I don't think that anyone has to be a rocket scientist to figure this one out. Almost all of the volume on Friday was sell at market from Margin Calls. This was triggered by a .10 to .15 drop in closing price over the preceeding days. On top of that SUF has been on a steady decline over the last three months from $9.00. The retail guys holding SUF in a %50 margin account over the last three months have been hit hard. They are paying interest to have their money taken away. Some guys might have sold something else to hang on to the SUF. If a .10 drop triggers 130,000 sell at market calls, what will a further .40 drop bring? There may be some traders, investors and funds that are leveraged more than %50. An %8 drop following a long run %30 drop is a disaster. Unless there is positive news and market reaction Monday morning driving the price well above the $5.30 level by 10.00 A.M. CST there will be a lot of cheap shares available. Retail guys on a margin heavy with SUF will be flushed out. If that happens with SUF sitting on positive exploration or earnings news which could be out there...well a lot of guys are going to be pissed.

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