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Re: Ritchiekaz post# 2693

Wednesday, 02/09/2005 11:57:24 AM

Wednesday, February 09, 2005 11:57:24 AM

Post# of 10162
Well,

The problem is why anyone would offer $0.02 financing when the stock is at $0.005? Might as well buy this at the open market... May be that's what the private investor is doing? Buy as much at the open market below their financing rate (this explain last few days' market action) and then release news that DMXP got financed at a much higher rate (say $0.02)? Let assume they bought 30 million shares at the last few days at avg price of $0.005 and then release a news that this private investor financed DMXP at $0.02. For one thing, DMXP share price would go crazy! Its not hard for their holding on DMXP worth 4 x as much (or much more). If they sold the 30 million open market purchased shares (at 4 x $0.005 = $600,000 for 30 million shares and they have 3 to 6 months to sell it due to obtaining the result of excavation), they got $450,000 back and really invested $150,000. If the share price went to $0.03, then they pocket $150,000 while getting all of their $600,000 money back. For each $0.01 up from $0.03, they get another $300,000. I'd bump it up as much as I can and get DMXP release as much information as I can. If I am the private investor, this is indeed what I would do.

Numbers can be fun, if you have the funds.
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