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Gold/Mining/Energy : AVL.V - AVALON VENTURES -- Ignore unavailable to you. Want to Upgrade?

To: Elizabeth Andrews who wrote (628)	3/26/1998 9:03:00 AM
From: DRT	Respond to of 1474

I would agree that the price tends to increase when shorts cover, but you can't look at it in isolation - it depends on the size of the short position (i.e. market influence), overall market conditions, material changes in a company's valuation, # sellers, etc. I know a few blue chip growth companies that would like to see the shorts go on an indefinite holiday! Just my opinion, not that its relevant to AVL's situation. This is the relevant part. Wolf Mt. PGE drill results + Separation Rapids rare metal metallurgical tests, market study, in-fill and exploration drill results, etc. ... getting all this information together and disseminated to shareholders will be a challenge in itself! We must all recognize that exploration drilling, assays and interpretation of drill results does take time (particularly when its rare metals or PGM geology). DRT

To: Elizabeth Andrews who wrote (628)	3/27/1998 10:09:00 AM
From: Keith Utz	Read Replies (1) \| Respond to of 1474

Elizabeth, a book could be written on how shorts can damage or destroy small natural resource stocks. One of the major problem with shorts is that by driving the stock price down with their ruthless tactics the company can not raise money for exploration or if they do issue more stock at depressed prices their is excessive dilution to current shareholders. Some say they help stabilize stock prices by muting extreme valuations but but they more than offset this benefit by their negetative impacts. Basically they are destroyers of small resource stocks....some may deserve their fate but many are caught up in their web that deserve better. One thing for sure is that its a mistake to under estimate their power. Keith