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Microcap & Penny Stocks : PanAmerican BanCorp (PABN) -- Ignore unavailable to you. Want to Upgrade?

To: barbara sperino who wrote (38313)	6/18/1999 12:00:00 PM
From: wonk	Read Replies (1) \| Respond to of 43774

Does this mean that you know that the PP shares are not restricted? According to the Rule, they are not. I personally know nothing more than that - at this moment. Does this mean that now if a person buy PP shares they don't have to fill out a form 144 anymore??? There are all kinds of PPs. As a general rule, my supposition is that a 144 would have to be filed, but my recollection is hazy. However, even if one assumes that the shares were restricted, the operative facts are as follows. 1. The shares were sold at a substantial discount to the market price (no surprise there) 2. Subsequently, the market price skyrocketed. Now if you were a holder of these shares what would you do? If you were restricted, once the steam came out of the rapid price appreciation, you would sell your shares short (short against the box) to lock in your profits. Once the price fell sufficiently - or if you're a good market timer - or if you know something that others don't - you'd cover. In doing so, you would have reaped a tremendous gain, yet still hold the original shares. That's just good market mechanics (neglecting of course the issue of inside information). If your shares are unrestricted, the foregoing strategy is still the correct one, but there is even less risk because you don't have to time the top of the price run. However, I still call your attention to the Form D sale and the subsequent price rise. This is how they write up manipulation in the textbooks.