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Gold/Mining/Energy : T.ITE: iTech Capital (TSE) -- Ignore unavailable to you. Want to Upgrade?

To: Lola who wrote (980)	9/23/1999 11:54:00 AM
From: keith massey	Respond to of 5053

Lola... I guess we will agree to disagree then <ggg> I don't think you can use PVO as a good example. I am very familiar with PVO and think that is a whole different ball game and can't be used as a comparison to JDX. PVO is in the mining sector and has $8 million cash. For the past couple of years Bob Atkinson's and Bradstone Equity Partners have been trying to get at PVO's cash through through open-market and treasury-stock purchases. They have been planning right from the start to get control of the company and kick the existing management out and then take the cash. The already tried once to get at the cash but were unsuccessful. Of course management (David Henstridge, etc.) is trying to stop this takeover and losing his job without much luck. The private placement you are taking about was for 1 million shares at 62.5. At the time the stock was selling for .45. Because Bob Atkinson's and Bradstone Equity Partners own more than 10% in a single account they are considered insiders. Most people found it strange that a private placement to insiders was done at a far higher price than the current market price. However it only makes sense that the current management refuse to do a private placement unless Atkinson paid a premium on his shares. So you are correct that a private placement was done to so called "insiders" and then the stock slipped to .50 but that is a far different case. However to be fair there are lots of cases where insiders purchase millions of shares and the price slips below that price....the one big difference....this is Carlo Civelli. I have already documented all his past private placements in companies and it is a very rare occurance for the stock to drop below his purchase price before it has done a huge run and he has time to dump. Plus the .60 level is not just resistance because of Carlo's purchases. If you look at the chart you will see both a bull flag resistance point at .60 on good volume to confirm and also that .60-.62 is a fib. retraction point. So in short I still say that .60-.62 in the ultimate downside risk. Best Regards KEITH