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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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Message: MONEYBOY, Re: MacQuarie [old Orion] House #11
2
Jan 31, 2008 05:59AM

MONEYBOY, Re: MacQuarie [old Orion] House #11

posted on Jan 31, 2008 09:55AM

Thank you MB!

Ok. That seems to make sense. Ideas on how to figure out how long this will go on?

Posted by: moneyboy on January 31, 2008 12:46PM

You guys just don't get it.

Look at the volume pre deal and you will see several days before the deal was announced the volume spiked up. People were shorting into the deal at prices higher than the UNIT price of $2.10.

Remember this was a unit deal with two pieces of paper each having a value.

The common shares and the warrants. If the warrant had a value of say 10 cents then the they paid $2.00 for the common share part of the unit. Therefore when they deliver the common at anything over $2.00 per share against the short and cover then they own the warrants for very little. If they were real smart and "well informed" (wink wink) and sold short before the deal at any price above $2.20 then they do the same to cover the short with the shares they recieve in the deal then they have actually recieved the warrants for nothing. Sweet deal. No capital outlay and it is as if Fung and his buddies just gave away the warrants for nothing and the we retail (some call us sheep) paid for ther $60 million financing or at least a good chunk of it.

It is how the real world works I'm afraid. All it takes is some salesman at one of the underwriters to get wind of a deal and then tip off his best clients and it is all done on the QT - all verbal no paper trail just the footprints of a volme run-up right before the deal. It is done all the time. Iin this case with the price of gold going up at the same tie who is to say that the volume spike was not just as a result of the gold price and not the pending deal. Of course there were a few post about a financing being a done deal even on the chat rooms a few days prior to the announcement. Coincidence?

The company can be rubes just like us since it all happend generally outside the company knowing that someone in the sales department found out about what corporate finance was up to. Of course in this case Fung the Chairman of Crystallex works at the underwriter, Macquarrie in the Corporate Finance department. He must look real funny with two hats on his head.

Go ahead look at the volume on the AMEX and TSX for the last couple of weeks and look at the three days leading up to the deal. The regulalators are as stupid as the so-called sheep. They don't want to know what is going on.

The funy thing is if you knew that this happened the best way to get the stock up is to kill the deal. That would force a short covering with not enough stock available. However, don't hold your breath and besides I think we will see that Crystallex is out of money and therefore if this deal was killed then they would be too. JMHO

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