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Non-Tech : Starnet (SNMM)Online gaming, sexsites, lottery, Sportsbook -- Ignore unavailable to you. Want to Upgrade?

To: David M. Green who wrote (4256)	7/31/1999 5:03:00 PM
From: Gator	Read Replies (2) \| Respond to of 8858

David, Besides the Shorts, another thought on the Bashers... (A brief explanation) My experience speaks mainly to my familiarity with Canadian Stocks, especially the Vancouver and Alberta Exchanges, however the general psychology should apply to any stock, in any market… Financings or Private Placements offer an unique opportunity to those investors that are cash rich, and willing to take some risk...typically, you get one low priced share, and a warrant (option) to purchase an additional low priced share (at a time in the future)...this is designed to lower any risk and provide an incentive... Here's the interesting part... Knowing a Company is hungry for funds, here are two scenarios: The first, and NOT Starnet: A price (discounted) is set, below market value by the company, the PP is filed with the exchange...the Houses go to work and manipulate the share price in a fixed range (from Insider accounts) until approval is granted... Why, you might ask, well, any substantial increase may result in the PP not being approved by the exchange...there is a limit to any "Favored Status"...Some companies will go a bit further and initiate a quite period (sometimes, even requesting News Letters to keep quite) , in order to keep the price low, and get the PP through... The second possibility, and what I believe might be happening to Starnet: Those that are anticipating or plan to be participating in the Nesbitt Burns sponsored financing, may have joined forces (a very hard thing to prove), and in a concerted effort, are attempting to suppress the price (through bashing), in order to position for a more advantageous price position in the offering... This, plus the obvious short interest, is why we are where we are... Later...Gator