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Gold/Mining/Energy : Manhattan Minerals (MAN.T) -- Ignore unavailable to you. Want to Upgrade?

To: Not_Active who wrote (3036)	7/11/1999 5:00:00 PM
From: Jeff Dickson	Read Replies (1) \| Respond to of 4504

I'm not sure what your point is concerning dilution and charting. In a stock like Cisco the extra stock coming out as options doesn't change the overall valuation of the stock greatly. With a stock like Manhattan a financing can greatly change the amount of stock out there. When Cisco split 3:2, my chart changed. My chart for Manhattan over the last few years hasn't adjusted, yet they've gone from 16 million shares to 25 million shares. The Manhattan chart will no longer reflect levels which the value investor might use. There is certainly value information in a stock chart. When Niles came out at said Dell was worth $80 a share back in Jan (or was it Feb?), the stock traded around $80 (then went lower, but it is now back there split adjusted). (That was actually a case where a stock can gap down big, even a big one like Dell). Thus, as a stock becomes more diluted, it will tend to trade smoother and be easier to TA The law of large numbers is everywhere :). Plus the variance should decrease with the square root of the volume. That half a million shares (or whatever it was, I don't have the exact data in front of me) that was bought above $8 will hit the market when price reaches near that level again, and that will at least provide a hesitation to price movement, and thus resistance That's true. But there are also levels that don't show up on the chart, like those of the previous financings. I was thinking there should be resistance at $7 and $9. Turns out that stock is gone, so that won't have an impact. -jeff