North Bay Resources Inc (NBRI)

[Cee-It]

RE: The big sellers are NBRI's financiers. They don't seem to think selling is nonsense.

They are like BANKS. When a bank takes back a property they will liquidate it to recover the principal of the loan. The same is true with the lenders to NBRI. They consider the failure to repay the loan as a default, so they take equity and sell it to recover the principal and any profits remaining in current market price. Most of them give no consideration to future market price versus liquidating now.

Some of the best buys in real estate are from buying repo'd properties. The same is true in the stock market at times. It is especially true when one company has been experiencing massive selling due to many repo'd shares. The SELL PRESSURE far out weighs the BUY side, so what happens to appraised value? It becomes severely discounted because the sell becomes fear and not enough buyers are weighing the inherent values remaining in the shares. They are all fearing the decline without regard for the potential recovery. So, when there are 350 million shares outstanding the market price is reflecting the anticipated 600 million shares outstanding.... that's the effects of the fear and anticipation. The pps is unrealistic for current real conditions; and it is reflecting what trends show is happening; but, trends can ALWAYS change quickly.... then somebody makes a lot of good money by anticipating that change.