Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : ASHTON MINING OF CANADA (ACA) -- Ignore unavailable to you. Want to Upgrade?

To: JP who wrote (5975)	8/6/1998 3:48:00 PM
From: Ned Land	Read Replies (1) \| Respond to of 7966

That's a common theory, JP, but one I have difficulty swallowing -- like yesterday's news! <g>Could the Ashton parent company want the price to drop so that they can increase their interest in Ashton Canada? Anyone know the legalities of this sort of move?<g> If they were inclined to increase their interest I'm sure they would like to do so at a lower cost. The question you were getting at, I think, was would the parent company encourage ACA to "spin" unfavorable news in order to create a less expensive buying opportunity? The answer, in my opinion, is a definite no. Here are some reason: 1. Duty of loyalty....directors have a duty of loyalty to shareholder, all of them, without preference. If you can prove preferential treatment, you've got yourself a lawsuit. 2. Corporate Opportunity Doctrine....you cannot, if you're a director or officer of a company, "steal" a business opportunity that would otherwise accrue to the company. If you can prove such behavior, you've got yourself a lawsuit. Then there's the issue of criminal matters. If the parent company wanted to increase their position in ACA they would obviously have information that the public didn't. Insider trading -- whoa, there's a nifty charge.Next, there's the complicity of current directors/officers in the intrigue, which would constitute manipulation. Again, I just don't buy it -- too much risk for modest gain;the marketcap on ACA is already low; there's no reason to pull such a reckless exercise just to same a few million. Its not logical. There are four stages to receiving bad news: 1. Denial 2. Blame 3. Acceptance 4. Dealing with it. I don't believe there's any intrigue here. It was just bad news. The sooner we "deal with it," the sooner we can make sound investment decisions.