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Gold/Mining/Energy : Ontex Resources (ONT Alberta) -- Ignore unavailable to you. Want to Upgrade?

To: Gemini who wrote (353)	7/30/1999 2:50:00 PM
From: mark warburton	Read Replies (1) \| Respond to of 519

I have had a flood of calls starting this morning and continuing from people I have recommended the stock too. They all say look at if maybe I should bail now. First off 20 to 30 is where it spent years so the downside from here is minimal before you hit support. Second the volume from 80 down to here has been minimal to say the least. If you have been watching the trading and you elimnate any crosses which are one firm selling back to the same firm the volume is miniscule. A lot of times that is referef to as positioning. As a stock drops and you suspect it will rally again you move stock to a more benficial tax stand point at the right price. They are not relly trades as the stock never really move from party to party. The problem is it appears to make the stock trade at lower prices. Todays action is someone bailing out. Scared by the low prices and one person jumps ship. Hope it ewasn't a co worker I see what they can do in Atlanta. Soon as I get the balance of the story I will post it. Don't know what he meant but he was positive in his comments. I called Ontex to find out Robin is vacationing and the rest of them are in Toronto. Talked to them and they said no idea but that they were getting a lot of calls. They sounded quite cool and said again that the price of gold was low. I said no their has to be something bigger happening behind the scenes, What's up. His reply was you tell me. I said no I mean come on what's really up. He said sounds like you heard something you tell me what you heard. I said nothing he said yeah well you wouldn't be asking if you didn't hear anything. So the conversation kind of did a circle. So assume what you want, thats what I got from them. Nothing. Gemini you bring up a good point that the price may be too low to list on Toronto. Certain market capitalizations and cash requirements must be met. The trouble seems to lie with the market makers and not the shareholders. No liquidity at the moment. On Toronto or any senior exchange you have a bidding process when you apply to make the market in the stock. The best bids usually get to make the market. It goes like this lets say 123 brokerage house and 456 house both are applying to make the market in a newly listed company. 123 company offers to the exchange to guarantee 10000 shares to be bought or sold at every 5 cent increment under 1 dollar 7500 shares every dime over a dollar and 5000 shares every quarter over 2 dollars. Their you have a guaranteed market. If there are no buyers or sellers on any particular day 5 cents nelow the last price the pro is their with a bid. If you fill his bid he is bid again 5 cents cheaper. What some houses do is pair up pros so you have 2 market makers. This way they double the guaranteed market and offer stronger liquidity. That is a very positive point for listing on a senior exchange. On the junior markets it seems to be anything goes. In my trading days you would have 2 or 3 pros in the options pit on all the actively traded issues. LAC, Barrick, Placer and Hemlo is those days. Will let you know the minute I hear something.Mark