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Gold/Mining/Energy : Nuvo Research Inc -- Ignore unavailable to you. Want to Upgrade?

To: TheBusDriver who wrote (11904)	1/21/2003 5:01:54 PM
From: wilyolvet	Read Replies (3) \| Respond to of 14101

This is it I am more excited about the prospects now than anytime in my many years as a shareholder Dmx mgmt has taken great pride in minimizing the number of shares issued for many years Now that HD and FDA and WF10 are virtually at the doorstep, which likely means a substantial appreciation in share price, management has chosen to issue 13 million shares at a price that is near the all time lows instead of waiting a few weeks and doing an issue once the share price has escalated on the good news....what does it mean????? Here is what I think is happening: 1)Once the announcements are out, we are likely to see the share price back in double figures 2)There are approximately 13,000 retail investors in DMX at last count who are mostly small players....they likely have very little money to play with at this very late stage of the game....many of those that still have cash available are disheartened by the poor performance of DMX management....either way, there is likely to be a large number of rights that won't get exercised by the small investor 3)Anyone who has been around the game knows that rights offerings hurt the share price short term so it seems to me that only someone that wants the share price to go down would pre-announce the fact that they will be doing a rights offering rather than just announcing the price (DMX has a history of minimal disclosure and could easily have waited until the terms of the rights offering were finalized before announcing) 4)I expect DMX management to announce with the offering the fact that a "white knight" will take up all of the unexercised rights 5)I expect no news before the rights offering expires 6)I expect that the "white knight" will pick up about 10 million shares on the exercise of the unused rights...I use the number 10 million, because i believe that the AGM usually has about 12 million shares represented on hand and 12 million divided by 4 equals three million (which leaves 10 million left over) 7)I expect a barrage of good news shortly after the rights have expired and the price will soar....this type of trading pattern is not unusual for a rights offering Now why is it that I would think such crazy thoughts???? Well, lets look at the math....lets assume the white knight picks up 10 million shares.....if the stock moves from $2 to $10, then 10 million times $8 is $80 million...if the stock goes to $20, then the win goes to $180 million....pretty good incentive imo For those that think I'm nuts, ask yourself why they would pre-announce a rights offering and why they would suddenly issue 13 million shares at near historical lows when the share price is expected to be much higher in the very near future....if you owned a private company and you wanted to raise $26 million dollars, would you rather raise the money by issuing 13 million new shares of perhaps 2 million new shares...one more tidbit...why announce the rights offering on the same day that they announce the quarterly numbers which indicate further losses, potential problems with provalis still linger, and the fact that the company had mortgaged its only remaining unencumbered asset which could be seen by some that there was no more alternatives So why am I so excited???? The news must be guaranteed and coming soon or management wouldn't make this extraordinary move that flies in the face of everything that makes sense....ya just gotta love greed I won't be diluted as i sold enough on Monday above $2.50 to pay for my share of the rights (i hope for a minimum of 20% profit as I expect the price to be a maximum of $2).... I am really excited about the inevitable announcements that are sure to follow....I feel sorry for those that will be diluted just before the good news hits but at least now everyone here has been informed and everyone has an equal opportunity to participate What a brilliant strategy by management.....those that get more shares will be dancing in the streets when the price goes up and management can take credit for being the "good guys" while at the same time deny any wrongdoing as they can simply point to the fact that those that believed had a fair chance to buy....beautiful wily