Replies to post #2851 on PowerLinx Inc (PWNX)

[srsnetworker]

Seahag, you missed my point. The first round of restricted shares (at least those from the convertible debenture to non-insiders) are not eligible to be sold until after Dec 21, 2000. Selling restricted shares between 12 and 24 months from issue is a complex process that takes a lot of time. The certificates have to be returned to the transfer agent along with a legal opinion stating that the sellor qualifies properly to be allowed to sell them. This takes a lot of time.) I believe most restricted shares will be held for at least two years just to avoid all this bureacracy. I don't think we are seeing restricted shares in this weeks high volume.

My point being that they are not in the high volume we are seeing traded recently. Also the trickle out shares from reverse merger with Gopher and the consulting agreements could not account for much of this volume.

So who is selling now? It comes down to investors who bought early in 1999 are selling for a profit and others who bought after Feb 2000 are taking losses. Some here have suggested that it is the MM trading between each other, but I don't understand the economics of this. If they are competing for shares to cover short positions, why doesn't that drive the price up? Maybe somebody else can explain this better.

[Duly Diligent]

SeaHag - you are correct - but

there is so much "banter" on the boards, I cannot find the link to a poster that actually had the restricted shares - but that is what he said - they were issued at $0.50 and $2.00 only - nothing in between.

Therefore, none of this selling is "taking losses", rather, it is taking it while it's still a profit. He (they) must think this is at a risk.

Please reply if you know differently.

Regards