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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: lindend who wrote (3701)	10/7/1998 2:24:00 PM
From: Pancho Villa	Read Replies (1) \| Respond to of 18998

Linden, PVN is one of the greatest shorts I have seen in my short life! Sell if you are long. Possible irregularities are too long to list. Here is one: Possible manipulation of stock price through third party. Also, a not so smart commitment to buy 1/2 million shares at 78+ Ouch! Read by yourself. The smart guys at PVN are the ones who sold and got the hell out at 80+!. From recent 10Q: Note 6 - Shareholders' Equity In June 1998, the Company entered into an agreement to purchase, on a forward basis, 500,000 shares of its common stock. At the Company's election, the agreement may be settled on a physical basis or, subject to certain conditions, on a net basis in shares of Providian Financial common stock or in cash. To the extent that the market price of the Company's common stock on a settlement date is higher (lower) than the forward purchase price, the net differential is received (paid) by the Company. As of June 30, 1998, the agreement covered 451,863 shares of the Company's common stock at a forward price of $77.92 per share. The agreement has a term of one year but may be settled earlier. If this agreement were settled on a net share basis at the June 30, 1998 market price of the Company's common stock ($78.56 per share), the Company would receive approximately 3,700 shares of its common stock. In June 1998, settlement of the agreement resulted in the Company receiving 48,137 shares of its common stock, which were recorded as treasury shares. With this arrangement they can buy at any time of the day but I doubt they will be capable of containing the flock of selling that is coming. IMO this is a much better short than NDE and look at where that other puppy is trading! Their loan portfolio is pure junk that will default like hell during the coming slow down. No liqudity! They can kiss securitization good bye!