To: .Trev who wrote (5474 ) 2/6/2001 12:39:00 AM From: Teresa Lo Respond to <font color=purple>Stock = Vehicle for Corporate Finance "...The idea is to figure out what the successful promoters are doing and do it too as a tag-along...Don't be surprised if the CDNX comes back to life this year....the signs are there for those who can see them." amazing because the U.S. brokerage houses promoted these stocks to their clients, and had CNBC blaring around the world to tout as well. We talked about this extensively at my site, about how "tight" corporate structure is the "supply" part of the equation, and how research departments and the media create the "demand" part of the equation. I could not believe how small the floats were; in fact, most Canadian penny stocks had floats bigger than your average U.S. Internet stock - no wonder they were able to do the big parabolic runup! But the public does not understand this - they attributed it to the New Era.through stock splits the float was increased by 10 fold or more...and this means more supply. Eventually the stock was crushed under the weight of the amount of "paper" outstanding.
