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Non-Tech : Sungold Gaming International (SGGNF) -- Ignore unavailable to you. Want to Upgrade?

To: John Lawrence who wrote (1401)	12/30/1997 11:52:00 AM
From: John Lawrence	Respond to of 5164

Clarification on TAC Investment and the MM Some people suggested some additions and corrections I should make re. my post to Yussy. 1. When TAC buys the four million shares, Sungold will have $24 million U.S. in the treasury. This will be the seed money that will enable them to finance Richmond Downs without giving away 2/3 of 40% to the operator and financier as they have had to do in Michigan. 2. With $24 million in the treasury, Sungold will be a giant step closer to satisfying the criteria for listing on the Nasdaq big board. 3. I made a mistake in describing how the MM profits from the spread. I said, " If the bid is 2 7/8 and the ask is 3 the MM buys at the ask and sells at the bid, thus taking 1/8 for himself." That is wrong, because if he did that he would lose 1/8. I don't understand the MM's trading practices well enough to describe what really happens. I know the MM takes risks, and can profit through buying and selling, long and short, within the spread. Someone else can handle the details. If you want to sell, you'll probably have to hit the bid, or if you want to buy you'll have to take what's asked. I'd like to know what happens to limit orders. --- Next topic. So it looks like our opening day/week is more of a whimper than a bang. The trading week is 2 1/2 days, when many traders and investors are on holidays. It's beginning to look like Sungold wanted to slip into the water slowly.