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Gold/Mining/Energy : Sideware Systems - SYD.u/V, SDWSF -- Ignore unavailable to you. Want to Upgrade?

To: MAKAMAI who wrote (4358)	11/3/1999 1:46:00 AM
From: KrisCo	Read Replies (2) \| Respond to of 6076

MAKAMAI, An interesting point to ponder "won't we be diluting the volume...[once] we will be trading on two exchanges" Yes it will! But the most important question is will it help to lift the price? Yes again! To simplify, you need to consider supply and demand. Many people are of the opinion that news is about to break on Sideware. What is it we hope will happen? Well, we hope that as news creates a larger pool of buyers, there will be more buyers chasing the supply, which is made up of a portion of the 47 million shares outstanding. The price will lift through resistance lines created by this supply. We can expect that since there is a large supply, there probably will not be a $10 overnight story. The buyers must chew their way through the resistance lines formed by the available sellers. The price will lift at the rate defined by new buyers chasing available sellers. The fact that there are two exchanges does not alter the number of available sellers. Only dissatisfied shareholders, higher prices or dilution can do that. The good news is that the pool of buyers WILL increase. This is because many US investors have no desire to trade anywhere but the US exchanges. The hope is that enough new buyers will join up and cause the momentum to feed on itself! Now add the fact that we will have both auction and dealer markets with an increased number of MMs and the market efficiency goes way up too. As an analogy, if the available sellers are represented by water in a jug with two spigots the water will just drain out faster. And when the water (sellers) is gone but there are still buyers then the price must lift, creating more sellers. So the net effect is an acceleration in the lift rate in a more efficient market. Or to put it another way... It can only help buddy, IMHO Kris

To: MAKAMAI who wrote (4358)	11/3/1999 2:16:00 PM
From: AGORA	Read Replies (1) \| Respond to of 6076

Mak, you raise a good point of discussion. In our opinion, current volume will be slightly diluted by current SYD shareholders who are also US residents. It makes sense these investors and their brokers will trade through US exchanges. HOWEVER, we strongly believe NEW volume will be created by US investors who are NOT currently SYD shareholders. We have no doubt there are plenty of US investors who are interested, or will become interested in SYD...but would never trade on CDN exchanges. Thus, you may see some short-term dilution but the longer term trend is towards heavier volume being generated out of the US. Regards, AGORA agoracom.com