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Gold/Mining/Energy : SOUTHERNERA (t.SUF) -- Ignore unavailable to you. Want to Upgrade?

To: VAUGHN who wrote (4154)	7/23/1999 11:51:00 AM
From: russet	Respond to of 7235

Speaking generally, a successful PP indicates to the market that the stock was able to convince insiders and "sophisticated people in the know" that there was something worth investing in. Those of us that chase such things buy shares at the ask price causing a rise in price, presumably with volume rising above previous days. The rise in price with volume attracts ever increasing numbers of the momentum players into the play, with the result that price and volume continue to rise. Momentum traders don't care about dilution. Many know very little information about the company. Now is the stock you are speaking of up today? If not, perhaps the play is now dead, and the stock will sink back until the next piece of news excites somebody. If it is up, the play continues. russett, the squished hamster.

To: VAUGHN who wrote (4154)	7/23/1999 11:57:00 AM
From: gemsearcher	Read Replies (1) \| Respond to of 7235

Hi Vaughn. Sometimes a stocks price is discounted because there is concern in the market that the underlying asset(s) are not "financeable". A PP that removes this concern can often lead to share price appreciation to such an extent that the dilutive effect is offset. This is an oversimplification/generalization and there are other equally important factors that lead to price appreciation , not the least of which is the underwriting firm(s) not wanting to look bad when they place the securities. Regards. P.S. Russett , albeit squished , said it better.