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

To: Claude Cormier who wrote (11926)	1/22/2003 11:17:37 AM
From: Montana Wildhack	Read Replies (2) \| Respond to of 14101

Scenario 1: The price is set on Friday at $2. with an exercise period of 7 weeks (March 15 expiry) I have no cash to buy the extra shares. On February 21 Dimethaid announces final HC approval with an expected March 15 launch date. The price moves to $3.25. I have 10,000 shares and am sitting on 10,000 rights which allow me to buy 2500 at $2.00. I need $5,000 in cash which I don't have. I decide to take advantage. I sell 1,600 shares on the market at $3.25 (pick your own numbers) for $5,200 in proceeds. I then buy the 2,500 shares for $5,000 plus the 10,000 rights on the same day. I now have 10,900 shares without coming up with new cash. I increased my holdings, reduced my average cost, and in my case crystalized a loss I can apply against future gains. Conclusion: If anytime during the exercise period DMX goes up in value, every shareholder will be crazy not to exercise with or without cash. This should also mean DMX would raise the majority of its in this case $25 million and I now have a stock that has sufficient cash again. Wolf PS - this tactic was described to me by a friend