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Gold/Mining/Energy : Medinah Mining Inc. (MDHM) -- Ignore unavailable to you. Want to Upgrade?

To: (Bob) Zumbrunnen who wrote (1938)	4/9/1998 2:50:00 PM
From: brent gephart	Read Replies (1) \| Respond to of 25548

Their seem to be several factors to consider when evaluating a) the price that mdin should be at b) why their seem to be sellers coming into the market. a)Mdin has 40 million shares outstanding with 31 million of them restricted. Thus 9 million in the float. This in actuality is not that many shares considering some of the other craziness that has been going on in the market in other small cap stocks. To compare this stock to Bre-X is not a good comparison by those that seem to be making it. First, their is gold. Second, both companies had different amounts of outstanding shares and that needs to be considered when "guessing" what mdin might be worth. Third, the purchases of these gold deposits will be paid for with the gold recovered from the ground. This means that additional shares will not be used to acquire the properties, this means the company is watching out for the dilution of the stock. That don't want the value of their shares to fall. b) As we all know with these small cap momentum stocks that do get hyped on the chat rooms you get people moving in and out of the stock very quickly. Secondly with the computerized trading systems that only cost $10 to $20 to trade people will do a lot of getting in and out of a stock. Third, the market makers need to make their living so they will move the stock down on light volume to get control of the shares a a cheep price and move the price up to sell the shares. Notice the light volume on the downside and higher volume on the buy side. As with any stock as well in this market as of late(last 2-3 years) people buy the rumor and sell the news. This is exactly what is going on now. People figure that once the news gets into the market the stock will slowly move down until the next set of news comes along. It was pure luck that mdin released news yesterday and today. If it had not released news this morning this stock probably would have started to slide first thing this morning. What investors need to do is consider what is there long and short term holding position. E.g. make one half of your position a trading position and the other half a long term hold. This is of course considering that you want to hold the stock for the long term. With Mdin a lot of people are only in it for the short term trade. I like mdin for the long term and have a stock position for the long term. Good luck to all long term holders. Brent