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Gold/Mining/Energy : Medinah Mining Inc. (MDHM) -- Ignore unavailable to you. Want to Upgrade?

To: Win-Lose-Draw who wrote (13204)	5/5/1999 4:12:00 PM
From: Ken Sammut	Read Replies (2) \| Respond to of 25548

WLD, In theory, you may be somewhat correct but in the stock market, theory many times goes out the window. When a blue chip like Pepsi spins-off their restaurant divisions or AT&T spins-off Lucent, the original company's share price does open lower the day of the spin-off in most cases. These are companies that have dozen of analysts following every day and they come pretty close on determining the value of both parts pretty well. Once trading begins, anything can happen. No dilution is taking place in the case above or with MDIN (dilution-the word you are using) as shareholders have both parts of the whole and in many cases end up having more value as both parts gain in value as they are traded. Although this is a dividend situation and the untested properties are being brought private, no dilution is taking place. Can MDIN's share price go down once the dividend is paid to shareholders. The answer is yes but will go down very little if at all. MDIN was less than 7 cents just a few months back. The share price the market is giving to the stock is because of the drilling on Lipangue and LDM. The other unexplored properties remain unvalued. Not worthless but unvalued. Like a company which spins off some of it's assets to get a higher total value in the market place for it's shareholders, MDIN is doing the same. There may also be some other motives (shorts) but in the long run it will be the fundamentals that brings a true value to each stock. While Medhinah Gold waits for SEC IPO approval, management can begin to prove up some of these properties. It would be wrong for me to say I know they have the financing to do it (and I believe they do) as it would be wrong for you to say they do not have the means to prove some of the hidden value. This dividend is a no lose situation for present shareholders. Shareholders have an opportunity to win now on two companies and have not had to invest another penny. Strange that you do not want to see this or maybe you just refuse to see it. Ken