Replies to post #1715 on NanoTech Gaming Inc (NTGL)

[jcryan19]

According to rumor, Fayis sold his shares when the price was considerably higher.

If he was able to buy back at current prices, he would recapture probably 3 times what he sold.

What I don't understand is how can he sell 2.5 billion with out a PR and yet need to have one to buy them back?

Jim

[DueDillinger]

It's reasonably simple, PW. Because the price was so low, and the shares were probably sold at a discount (as with most equity financing deals) it took billions of shares to raise the amount of money that was necessary. The issuance of billions of shares was dilutive, and the result was a normal price decline for that reason. Furthermore, the buyers of the shares probably understood this, and shorted against the shares to lock in their value.

If the price had been higher to start, proportionally less shares would have been issued to raise the same amount of money. This would have been significantly less dilutive and would have resulted in a smaller percentage decline.

Why didn't Hilal publicize his successes to raise the price? Perhaps he was advised that the SEC really frowns on false and misleading press releases.

[skitahoe]

Penny,

I agree, I would have certainly done things differently but then I don't know why Fayiz may have needed to do what he did.

One thing I think is clear is that he didn't simply put the shares on the market. I would think that the stock was carefully placed with a very limited number of investors. It's just speculation on my part but you just simply can't put billions of shares into the market, even if they're selling for a fraction of a cent. I've seen where others believe he may have done it when the share price was substantially higher, I hope so.

Gary