Ok...out doing my reading for the eve and came across this one...it brought up a few questions that I can't quite get my head around either.

Here is the post, if anyone can explain his thoughts on PP I would appreciate it as well...

POST:

"today the not share prize was under a lot of pressure.

why? second thoughts on the news of hole 49, or new non favorite rumors on new holes? couldn't find any of those....

apparently somebody mentioned to me, it might have been caused by the brokers that did the underwriting for the pp, and now shorted the stock like crazy to be able to re-negotiate another and better deal for them with the company, and buy those shares and flow throughs for less than 2,80 as already agreed on before. so if the sp declines enough compared to the 2,80 level, (don't know the exact amount here) the company might have to agree on that whether they like it or not.

let's not forget the real costs (or value?) for this pp is not 2,80/share but including flow through and the tax reduction coming just to 1,68/share for that purchase.

so with that knowledge these brokers might be right trying shorting the not sp till 1,68, because after all that is what the Noront itself in reality considers the value of a share at this moment in time- the 2,80/share is just the window dressing so to speak.the real signal the company was giving here is that they think right now the stock is worth 1,68 cad$ in real money, for those who understand. did that type of pp eventually has triggered the brokers to start shorting and see how low they could get? they have another 10 days before this pp officially has to be closed, don't they?

now why if the news is that good as all rumors would like us to believe, (step out of 350/400 still hitting mineralisation) why did noront not used another type of pp and just nailed it down while the iron is still hot so to speak?

say you charge 2,20/share and that's it. why do they need to pimp this pp up with flow through stuff etc,....and have it not nailed down immediately so that these broker houses cann't start shorting once they smell some weakness?

or why not first releasing the rumored step out holes and then have a pp written out for a higher sp based on substantional better understanding of what the potential might be here? they still have enough money in the bank to drill a couple of months more, even on those deeper holes.

so is this a classic pump and dump again like eagleII turned out to be - i still remember 'the eagle has landed nr' on that, or what?

anyhow, do i oversee something here, do i miss a point, do i misunderstand; what is going on here? is there anybody more experienced here that could give some solid answers.

not bashing,nor trying to get in cheaper, or ego stuff, just trying to understand what the market is telling me, trying to improve for the future and educate myself."

Anyone want to take a stab at this?

GS40