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To: Peter W. Panchyshyn who wrote (1087)	6/13/2001 12:08:44 AM
From: whitepine	Read Replies (2) \| Respond to of 11633

Guess I am confused. If the size of the secondary issue was 10x previous values and if one held a position prior to the announcement, you would consider this a fair market transaction? Seems to me a market should operate on principle of open and equal access to information to all parties within market. If the distribution of knowledge about future actions is selectively available only to a few, then it seems clear that the market is unfair. Assume I am incorrect. Why would the TSE ever suspend trading of any issue? Of course, maybe we are just hoping that you will own a position in an issue when a 10X secondary is announced and your capital is diluted! To many, that would be fair for you and those who share your views.

To: Peter W. Panchyshyn who wrote (1087)	6/13/2001 12:48:56 AM
From: Lorne Larson	Read Replies (1) \| Respond to of 11633

Peter: Do you understand the concept of insider trading? If I trade on inside information what I'm doing is illegal. If I trade based on some degree of personal expertise (which I don't as often as I think I do), it's not illegal. What the brokerages are doing is clearly insider trading. They learn about a new issue coming out in say 30 days at a price of $11.50. (this is the inside information, which is not available to you and me); the stock at the time they learn this inside information is trading at $13.00. They short sell the stock at $13.00. When the new issue comes out at $11.50 they cover at $11.50. A quick 11% profit over 30 days. The reason the stock is dropping in the meantime is because they're continually shorting it - at $12.75, at $12.50, at $12.25, etc. Meanwhile you and I are scratching our heads trying to figure out why the stock is dropping. Unlike these sleazebags we don't know there's a new issue coming out. I simply cannot understand why you think there is nothing particularly wrong with this. This has nothing to do with the company (APF or PWI or whatever) which is issuing the shares. This is a brokerage scam. They're either buying for their own account, or tipping off their friends.