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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: Graeme Smith who wrote (14462)	11/4/2000 11:43:51 AM
From: lifeisgood	Respond to of 18998

I agree with you about companies such as this going up after lockup, except it is normally because their issuer is promoting them, which I cannot find in this case. Stocks that trade low volume are easily manipulated by market makers. It is relatively simple to create the illusion of demand and this is when insiders unload. Typically, underwriters will collaborate while this distribution of shares by insiders takes place. e.g., take a look at this chart for IPIX whose shares unlocked 2/22/00 quicken.com The stock closed at 30 the day prior to lockup. It subsequently rose to ~46 before cratering to current price of 2. Imagine that you're an insider. You would be intelligent enough not to dump your shares on the market as soon as you could. That would crater the price immediately. Instead, there is a steady release of these shares, sometimes accompanied by analyst "upgrades" or "news" events. These stimulate demand and allow insiders to get out of the stock at higher values before fundamentals eventually dictate share price. If you are short and have done your due diligence, patience will pay off handsomely. This will happend to CRWN with time. It is a lowsy company with a failing business plan and is burning cash like there's no tomorrow. We will soon see 144's filed showing the level of insider selling. best... LIG