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Gold/Mining/Energy : JAB International (JABI) -- Ignore unavailable to you. Want to Upgrade?

To: Milk who wrote (3422)	4/10/1998 11:09:00 AM
From: Phoenix	Respond to of 4571

Thank you for the link .... certainly IS a very interesting article. Especially the comment about Regulation S placements often being conducted as a part of a "bianry event" -- excerpt pasted here: >>>>>>How do the Issuer and Buyers Protect Themselves? Confidentiality: The first rule is to be very quiet about the whole process before and after the placement. The more widely it is known that a Regulation 'S' deal is being contemplated, the more likely that the price will decline or that short sellers will come into the process before or during the 40 day period. A Compelling Story: The ideal Regulation 'S' deal is the result of a binary event that occurs quite suddenly. It is something that is or it isn't, there is no part-way. Thus, on a given Friday it did not exist so the company did not need financing nor is the story compelling. On Monday it occurs. Now, the issuer needs financing and the story is compelling. Examples of binary events are acquisitions, spin-offs, regulatory approvals (i.e. FDA), contract awards, concessions and technology breakthroughs. Balance sheet improvement (particularly for financial services firms) when there is a steady earnings history and growth stories, particularly for companies with proven operational skills who do not wish to fund all future needs at current market capitalisations and might wish to finance their future in smaller increments to minimise dilution.>>>>>>> Perhaps they needed the money to fund the mining or milling of a major gold strike? That would be nice! It will certainly be interesting to see if we get any "good news releases" Monday morning! Phoenix