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Gold/Mining/Energy : Solv Ex (SOLVD) -- Ignore unavailable to you. Want to Upgrade?

To: JJB who wrote (5119)	11/24/1997 3:56:00 PM
From: norwalk hawk	Respond to of 6735

The Duke is not able to currently post messages on SI. He asked me to pass this message along for him. It is my understanding that both the Price Waterhouse accounting firm and Solv-ex's canadian attorneys have identified Bear Stearns for trying to buy out Solv creditors position (at a discount) in order to have the US court convert the debt into Solv stock in order to cover naked shorts. Since BEST is the largest clearing firm in the US, some firms they clear for must have severe net capital problems. Hello SEC? Anybody home? from THE DUKE Mike

To: JJB who wrote (5119)	11/24/1997 5:56:00 PM
From: Gary L Schultz	Read Replies (1) \| Respond to of 6735

JJB, Interesting news. If the allegations of naked shorting is true (I have a hunch it is - but not sure about the extent) then issuing new shares would certainly force any offenders into the light. Let's hope this is done so this issue can be laid to rest once and for all. You might know the answer to this one as well. If a naked short position is taken, and later when one desires to close the trade: Why would this have a upward bias on the stock price - assuming there were no sellers in the market? Couldn't the position be closed with cash instead of stock - since no stock really existed in the trade to begin with? Also, if you are short a stock that undergoes a reverse split (say 100 to 1) - can you then cover your short postion with the purchase of a single share of the new stock? Regards, Gary