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Gold/Mining/Energy : CMYN -- Ignore unavailable to you. Want to Upgrade?

To: trader who wrote (521)	4/1/1998 10:39:00 AM
From: Peter Fein	Respond to of 811

My question of illegal activity refers to the financier structuring this deal knowing the result would be a massive price decline & taking advantage of it, either shorting the stock themselves, or getting a kickback from the preferreds, who were guarranteed profit at any price. Of course, this is speculation. Granted, management is a bunch of idiots with regards to investment banking. This is why they hired Capello & Laffer to do the deal. C & L could therefore be liable for negligence, breach of contract or something like that b/c they did not provide sound advice as they were hired to do. The best solution i see to this problem involves taking the $10 million odd in cash and buying back the preferred shares from those holders who voted against the change in the agreement & resubmitting it to another vote. Barring that, take a loan and buy back all the shares, but get them off the market. At current prices, I see a dilution of somewhere around 750 million shares. Given the company's historical market cap of around $24 million, we get a future share price of 1/32, right where we are now. Problem being the common shares are limited to 300 million by the IPO. Is this number affected by a reverse split? Where does Casmyn end up if they are unable to give the preferred holders their common shares? Frankly, it wouldn't be a bad thing if the preferreds took over the company - they were smart enough to get in on this deal & they're probably smart enough to run the company. --Peter

To: trader who wrote (521)	4/1/1998 10:41:00 AM
From: T.Bill	Read Replies (1) \| Respond to of 811

From the March 2nd news release: "In addition, the Company has retained the firm of Coopers & Lybrand to investigate all the trading activities in Casmyn's common shares, with the view of identifying any trading irregularities and/or market manipulation that may have occurred." Presumably, illegal shorting was necessary to set off the death spiral. I'd like to have an update (or conclusion) from the investigation. But would proof of this even help the common shareholder? Perhaps if CMYN sued certain parties and was awarded large cash settlements which would then add to the company's assets. Are there any other positive spins that we can hope for? T.Bill.s.piling.up/ moneysflusheddownthecmyntoilet