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Gold/Mining/Energy : Westfort Energy Ltd. (WT-T) -- Ignore unavailable to you. Want to Upgrade?

To: keetmon who wrote (1159)	10/20/1998 2:36:00 PM
From: M. Merriam	Read Replies (1) \| Respond to of 1288

WT dilutes stake of present shareholders: The company has recently closed a private placement for the sale of 1,500,000 units at 84 cents. Each unit is comprised of one share and one warrant entitling the holder to purchase one share at $1.05 for two years. Months ago I warned (with a dash of sarcasm): "That's strange. Then why is WT paying a PR firm to pump the stock? What reason, other than preparing the market for an equity issue, does a company have for spending money on PR? But you say they won't need to issue more shares... Could it be possible that WT is a promotional play no different than hundreds of other penny stocks, and the PR firm is used to help the promoter and insiders dump stock at inflated prices? Can't be--that would be too much of a stretch. We all know (or those of us who accept your analysis) that WT is almost automatically going to US$57 as soon as the drill gets to depth, so again I ask, why are they spending money on PR?" techstocks.com A supporter soothed fears, writing: "WT will drill new wells as they see fit. There are no plans that I know of to issue new shares. Dilution is NOT an issue. As they recover and sell the oil, they will start new wells. If they feel it will be in their best interests to finance any of this then they will do that. I have confidence in the ability of those running this company." [My emphasis.] techstocks.com I still suggest that dilution IS an issue as is lack of confidence , both in promoters and management. Mike