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Gold/Mining/Energy : Francisco Gold - FGX.V -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (803)	5/9/2000 12:31:00 PM
From: Elizabeth Andrews	Read Replies (1) \| Respond to of 1907

This is a deep and complex topic. I'm not against any model and I believe promoters are a necessary part of the exploration company. If you think about it from the underwriters perspective then you will know that in most cases you are being asked by a company to buy shares for your clients that are worth a fraction of the asking price. The premium is the ability of the promotion group to create liquidity about the IPO price so the underwriter can sell. The future value of the prospect is a way down the list, behind things like share structure lock-ups and other things of advantage to the underwriter. The successful promotion groups take all this into consideration and build a long term relationship with an underwriter and their distribution. If the property works life is beautiful. If not the balloon must end up on the ground as nothing constructed can overcome non-economic results.

To: russwinter who wrote (803)	5/9/2000 2:39:00 PM
From: Claude Cormier	Respond to of 1907

Russwinter, I have always prefer management that go easy on promotion. This helps reduce volatility and risks for new shareholders as the stock rarely sells at large premiums to fair value. This low profile style often creates discounts, but they are always temporary. Any time I hear a management group forecasting or suggesting something that cannot yet be substantiated by facts, it rais a red flag.