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Gold/Mining/Energy : Derlan (T.DRL) -- Ignore unavailable to you. Want to Upgrade?

To: Stephen O who wrote (137)	2/17/1999 12:25:00 AM
From: Serge Collins	Read Replies (1) \| Respond to of 319

That is known as an "overhang" in the business. It is usually stock inventory carried by a brokerage or a brokerage selling for an institution. This is detrimental to any upward movement in the stock and keeps a lid on any price increase. I've noticed however, that Griffiths is unloading its holding in an orderly fashion so as to avoid further depressing the stock. This overhang of stock could have been on the books for months and doesn't necessarily reflect present fundamentals or future potential. It could be a large block of stock that didn't find a buyer, therefore the decision to liquidate the position is taken. I think Griffiths has been selling now for many weeks. Keep in mind that Griffiths might have bought the stock below $1.50 late last year when Derlan collapsed and is now selling off part of its holdings to book profits and will retain a portion. Of course, this is all conjecture, but judging from the way they have been selling, it doesn't appear to be a matter of concern to shareholders. If they were really concerned about some fundamental matter, they would have unloaded the stock in a hurry.