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Gold/Mining/Energy : Naxos Resources (NAXOF) -- Ignore unavailable to you. Want to Upgrade?

To: mark silvers who wrote (7567)	12/20/1997 2:31:00 PM
From: Jan A. Van Hummel	Read Replies (1) \| Respond to of 20681

Mark, Knight has a point. In the process he confirms himself what he has been fighting us longs for all along, namely that the stock is stronger than it is trading at. He should be concerned about being short. He speaks about "allowed" as if "manipulated" and if so, I am not sure I would agree with that interpretation. For investors to come in I doubt that at this point in the process they would have stepped in as easily at $10 - $12 than at the current $6. This is still a high risk stock and these investors need to see a little bit of a cushion, some comfort, an incentive before committing to big bucks. A share price at $6 plus warrants will do that better than $10-12, which would be a totally different ballgame. So Knight may well be right by saying the stock was allowed to drop to accommodate this PP. This should also be a strong sign to Knight that when this stock start moving higher and when there is no need anymore for PPs, he will have lost his window of opportunity to first cover his shorts and second to get on board with the rest of us. Mark, there are few level playing fields when it comes to big bucks. Let's not automatically assume that whatever happens at Naxos is done on a level playing field. There will be a lot of dilution before all the pieces of the puzzle will fit together. Boy, I hate it when a short makes a good point. (GGG) JMHO Jan

To: mark silvers who wrote (7567)	12/20/1997 3:32:00 PM
From: knight	Read Replies (1) \| Respond to of 20681

Mark, I considered the dilution factor, but sometimes the powers that be don't see it as a detrimental factor. The PP participants might be more comfortable with quantity at a lower price. More bang for the buck, so to speak. Management may be more concerned with raising the cash at this point rather than further dilution. The way this whole stock price retreat has played out; it looks like the $6.00 figure was in place some time ago. Just MHO, but I believe they had ample time to do the PP at the higher trading price prior to the 97-19 release. I think one concern that all shareholders should consider at this point is what is going to happen to the share price when all this stock comes on the market after the blackout is lifted on insider trading. If the deal goes through with J/L in the new year, the dilution will be staggering unless Naxos opts for debt financing. Just a thought. knight