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Gold/Mining/Energy : Daytrading Canadian stocks in Realtime -- Ignore unavailable to you. Want to Upgrade?

To: WhatsUpWithThat who wrote (10439)	5/1/1999 6:53:00 PM
From: New Economy	Read Replies (2) \| Respond to of 62348

MCF Financing: I am starting to believe the company capitilized on the stock price last week and quickly did the financing @ $6.00. To answer your question: When a company finances operations by issuing more shares: there is a dillution of earnings on a per share basis. Lets say MCF were making .10 /share the issuance of more shares decreases EPS which increases their PE ratio and if institutions or analyst are following MCF then two things happen: their expectations of earnings rise to compensate for the issuance of shares or they know the company will not meet the expected earnings on a fully dilluted basis and they bail out. Notice the chart on Friday after the halt, the stock went down to $8.00 on a lot of volume. My take is that the big players learned this and quickly transacted large blocks at this price. It is unfortunate that a Mr. Harmon wrote in Sat. G&M that he would not buy MCF for the long-term because he thinks that in six months somebody else can copy the business model...whatever. I sold my MCF and made some bucks daytrading it on Friday and I have not set up my account for shorting which I am seriously considering given the influx of retail investors pumping these Cdn. inturnuts out of proportion. Congrads go to PAVLOV and other shorters on Friday you folks have some balls...but if you are ladies then I guess you have a lot of guts.