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Microcap & Penny Stocks : ECNC: BETTING, INC. A WAGER ON NEW GAMING TECHNOLOGY -- Ignore unavailable to you. Want to Upgrade?

To: Jorjenzak who wrote (2758)	6/18/1999 12:40:00 PM
From: Tradewinds Tech	Respond to of 2909

Is there any way for you guys with "Level II" access (what this is exactly, is a little beyond my knowledge) to distinguish a "sell" from a "short sell"?

To: Jorjenzak who wrote (2758)	6/18/1999 12:59:00 PM
From: Tradewinds Tech	Respond to of 2909

BETT recently put out a press release announcing a $500k debenture that brought working capital into the company. One of BETT's recent SEC filings includes what I think is meant to be a "typical" debenture contract. The creditor that provided the $500k probably signed an agreement like that. A debenture is a loan that can be converted into equity. In other words, the creditor that loaned the $500k, can choose to convert the loan into BETT stock. The debenture agreement contains a formula for how much stock is given in the case of conversion. The lower the stock price, the more shares the creditor gets. It is a normal part of the thinking for creditors that loan funds in debentures, to hope that the stock takes a temporary big dip at conversion time. In effect, this gives them a chance to buy shares cheap (the conversion is like a purchase from their perspective), and then sell at a higher price when the stock recovers. If you are an organization with money and knowledge, and you loan money via a debenture to a small firm like BETT, you can sell short and force the stock price down temporarily, so you get more shares at conversion time. After, you are supportive of the price going back up, so that you can eventualy sell at a much higher price. This is just part of what a small firm goes through to raise capital, and may explain the current price. It may also explain why Tom is so anxious to temporarily get as many shares as possible out of the hands of brokers, so they can't be shorted. If this line of reasoning is correct, then the stock should recover very nicely once the pressure is off. That could be a few weeks away. In the mean time, it is a buying opportunity. Also, if this line of reasoning is correct; while the short-term price gyrations are unsettling, it is a sign that bigger players are starting to take interest in BETT. This may be a necesssary and important prelude to busting through $1 on the way to 2,3,4,....