Re: MacQuarie [old Orion] House #11

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Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America

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Re: MacQuarie [old Orion] House #11

in response to

Re: MacQuarie [old Orion] House #11

jcwillis

posted on Jan 31, 2008 07:12AM

I am not clear on why an underwriter would do an offering at 2.10, and then keep the price below that.

My thought is that the underwriter and his "close friends" short the shares on advance info (SP usually trades higher than the offering). When the price falls back due to the shorting and resulting fear that SP is falling, they buy back and make $s.

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