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GEORGEJEFFERSON

10/11/07 2:15 PM

#39517 RE: blitz1856 #39516

blitz,

Ya never know.

The price might not actually drop.

I personally think every time some one sees action A leading to effect B,..it never happens in the market [contrarian indicator and the reason I didnt sell upon registration of the RS when everyone bitched and moaned and we dropped].

My thinking is that it is generally recognized that RETAIL doesnt affect pps very much,..RETAIL is generally a small small part of a float,....so while I humbly admit I dont know why the RS and lock-up has affected the PPS the way it has....I would be surprised if RETAIL could truly inflict mass damage here.

The real question to my thinking,..is/ has been....what do the mm's wanna do here? What is really going on with strategy behind the RS?

gj
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runningAllDry

10/11/07 2:26 PM

#39519 RE: blitz1856 #39516

Both cases could be good or bad!
Panic sell-off when all shares get released might be worse than a steady supply releasing one by one.
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oilspec

10/11/07 2:45 PM

#39528 RE: blitz1856 #39516

Blitz: I share your concern and unfortunately I think it may be very realistic that some brokers may show converted shares earlier than others, leaving some investors in an illiquid position when the PPS moves.

George: If a large block of shares (and we don't know HOW large) suddenly becomes tradeable, there are only two things that can happen with those shares. They are either HELD or SOLD. They can't represent a buy because they were already bought. So if you are optimistic, only a few percent of those shares will be sold in the short term. But the release of those shares can only provide downward pressure. I'm hoping you are right that this may primarily be limited to a relatively small number of retail shares.

Malyshev has clearly shifted gears from the "Delay" PR and the Split to regular, positive PRs. If this continues, hopefully any impacts from converted shares being made available will be small and temporary.