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

To: twentyfirstcenturyfox who wrote (12024)	1/27/2003 11:32:24 AM
From: wilyolvet	Read Replies (2) \| Respond to of 14101

i keep getting asked what i think will happen i don't know but the nr will likely give us a very strong clue...if the nr contains a white knight, then i would immediately head for the exit as the share price will likely tumble to $2 (the share price often moves down to the strike price during rights offerings)...the problem is that everyone else will be doing the same thing so the share price will drop almost instantly so...if you think there will be a white knight, sell a few shares now as you can be fairly confident that you will be able to buy back any shares you sell now at lower prices later (you can also have the comfort of knowing that you can still exercise your rights at $2 thereby protecting your downside) if you think there will be an announcement during the offering period (which would likely mean that the nr would not include a white knight), then sit back and wait until the announcement and then sell on the spike expecting that many others will be doing the same (timing will be critical and i would suggest not waiting for the very top as it is impossible to know where the top will be and it will turn in a heartbeat) here is where it gets interesting (for me at least): most investors will be dismayed if they see a white knight because it likely means no announcement during the offering period which means the share price drops to $2 which means no profit from the rights offering and it also means that somebody has been selected to pick up many millions of shares at near historical lows....personally, i will love it because it will indicate to me that mgmt knows that very good news is coming and they have decided to load up on about ten million shares just ahead of the news (this has been done many times before on rights offerings)....while we won't win in the next few weeks, we are likely to win large shortly after the offering period has expired (rights offerings provide an amazing opportunity to a white knight while giving mgmt an out as they can say they gave everyone a fair chance) on the other hand, the absence of a white knight likely means we will get a decent nr as mgmt will need the shareholders to exercise to provide badly needed money)...under this scenario, the possibility exists that we could see a big news release (fda) during the offering period but i doubt it or why wouldn't mgmt simply have waited for the nr and issued shares to the public at MUCH higher prices i know that i have touched on the above in my last few posts but i hope today's effort has synthesized my previous posts from a "today onwards perspective" i find it interesting that Rockwater - firm number 246 (a new company formed by the former Yorkton guys) has put the 50,000 shares they bought the other day at $2.05 back on the offering this morning at $2.25 - as soon as they did that the volume dried up....oh...i see that ds scooped it up as i'm writing this...the games continue...this is going to be fun wayne: my broker indicated that his firm is not allowed any american accounts other than RRSP accounts that were pre-existing from several years ago and the beneficial owner of the accounts must still be canadian....makes me wonder how the white knight deal will be set up if there is a white knight...i can't imagine it would have a canadian front unless there is another way around....btw, there is always another way around for anyone that has made it this far, i think a little humour is in order...my daughter asked me this morning to get her some pics of george bush off the net for a project...i went to google and typed in george bush pictures and the search turned up bushorchimp.com....for those that have a moment, i think the effort is worth it...i particularily like the one where the author can't find a matching picture of a chimp wily