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Gold/Mining/Energy : Maxam Gold Corp. OBB:MXAM -- Ignore unavailable to you. Want to Upgrade?

To: Richard Mazzarella who wrote (4301)	5/11/1998 2:53:00 PM
From: Alan Vennix	Read Replies (1) \| Respond to of 11603

Richard, <<Charles, I agree, 'tis a puzzlement>> Bid/ask for MXAM isn't the only puzzlement (Now up to 270,600 with ask at 0.53-RT). Look at CHIP. 66,300 shares bought at the ask and it hasn't moved a penny. Same thing happenned one day last week. I guess if I was currently buying I wouldn't ask "Why?", but as it is I'm finding it difficult to explain the behavior of MXAM or CHIP. BTW, one trade so far on IPMC - a buy at the ask - and they raised the bid a nickle to 0.35C. (Oops, now a single sell at the 0.35C bid and they dropped the bid back to 0.30C.) Alan

To: Richard Mazzarella who wrote (4301)	5/11/1998 10:01:00 PM
From: Larry Brubaker	Read Replies (1) \| Respond to of 11603

Richard: How about one more theory to explain the market action. 1. The MM's got caught with their pants down with little inventory when the stock was at 40 cents (remember it moved from .40 to .80 on not much volume). 2. The MM's built inventory at .75 expecting the buying which took it to that level would continue. 3. When the expected buying didn't continue at .75 and the MM's replenished inventory, they decided they better start offering less money for shares, and quickly brought it back down to .46 on low volume. 4. Now that they have inventory, it will take more volume to move the stock, at least temporarily. Under this scenario the MM's have taken it in the shorts in the last few weeks, which would seem unlikely. But maybe they didn't expect the buying which came in originally (they underestimated Richard's IRA?), and maybe they were also caught off-guard when the buying dried up at .75 (with the AGM close at hand and news overdue). Just another shot in the dark.