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Gold/Mining/Energy : Day trading in Canada -- Ignore unavailable to you. Want to Upgrade?

To: Kevin Hamlin who wrote (813)	10/11/1998 1:24:00 AM
From: chris	Read Replies (1) \| Respond to of 4467

It's funny you guys mention UBS. This stock has been in my long-term speculative portfolio for quite some time now. I was thinking of selling next week if it continued to show weekness, but now i will reconsider and watch the action. Perhaps i will even average down and try to break even in the short term. Who knows maybe even make a few pennies day trading. btw, i read somewhere a while ago that UBS (formerly PCS) was not a good l/t investment, just a momentum play, maybe i should have listened.(i think it was the canadian hot stock club on SI)Anyway next week should be interesting. Good luck. chris.

To: Kevin Hamlin who wrote (813)	10/11/1998 3:01:00 PM
From: Wizzer	Read Replies (1) \| Respond to of 4467

With respect to a PP and day or short term trading, I have been occasionally surprised by an announcement of a PP. The market will show signs that some sort of release is coming. Many times after the release of a PP announcement, I have had to get out fast or face the prospect of losing money. This has been my personal experience, and may vary for others. Someone steps up in a big way and puts their money where their mouth is, strongly endorsing their belief in the company....$800,000 on UBS.. Kevin, I will have to let the Chief or someone else field this question. I remember a discussion on another thread on this specific topic, and will try and find it. As far as I recall, there is a tax benefit as far as PP's go, that has an intense advantage to the person(s) putting up the money. Don't remember exactly what the specifics are, but at year end it has not cost them as much money. The way that I would look at UBS... I was trying to be more general than to look at this specific stock. One of you mentioned that UBS was the former PCS, which I was not aware of, I realized it is a stock I was very familiar with and could not pull the trigger last year at 15 cents or so (I would've sold for 80 cents or more in 2 days). I would agree that this scenario may be different. There has been some intense speculation on this stock since last year, and the PP discussion may qualify it as an exception to the "rule". think just a raw math approach might be too simplistic when looking at PP's for a given company In my opinion, the market always factors in a PP, no matter if the warrants are exercisable in a year or less. The market usually reflects this almost immediately. I have seen many stocks decrease in price within a calculable amount to the dilution of the PP, although UBS may be somewhat different. Nevertheless, we will have the luxury of hindsight in a few weeks or a month to review this further. ....the effect that the share dilution has on the company's existing shares. I think that many times investors don't look at the 1/2 share warrants and calculate that into the price of the placement. For example, at a PP price of 20 cents per share plus 1/2 share warrant, the "real" price of the shares are in effect around 13 cents. I am glad that you expanded and offered some more points to think about. I would rather err on the side of caution with a private placement, and an investor should really proceed carefully in this regard. If we have stimulated these thoughts in someone's mind, then I am sure we have done a great service to many people. Hope you enjoy your weekend, and I hope that we can revisit this topic some other time. Regards, Wisam