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Great Panther Silver Ltd Message Board

  • hipshot24 hipshot24 Apr 5, 2011 1:43 PM Flag

    Letter to GPL

    I sent the following e-mail to Great Panther this morning. Is there anybody on this board who can explain to me what this note in the prospectus says. I am aware of what can happen with a financing deal as far as investors going short to lock in a profit which can be captured when they receive their shares at a later date. But this seems to lay out a scenario where GPL explicitly acknolwdges that the underwriters will be manipulating the open-market GPL stock price. It sure does not appear that the bought price at $4.30 has provided price support, or that today's move in silver means anything in the face of the the following.

    http://www.greatpanther.com/s/Contact_Us.asp
    Tue Apr 5, 2011 at 10:18:28 AM ]

    Reading thru the prospectus about your new bought-financing I find the following:
    Subject to applicable laws, the Underwriters may, in connection with the Offering, effect transactions intended to stabilize or maintain the market price of the Common Shares at levels other than those which might otherwise prevail in the open market. Such transactions, if commenced, may be discontinued at any time. See “Plan of Distribution”. The Underwriters may also offer the Offered Shares at a lower price than that stated herein.

    Would you please explain what in the hell this is supposed to mean? In fact, it seems like someone was "stabilizing" the price lower than where it would normally be trading yesterday! And today, with gold and silver stocks screaming higher, GPL is just sitting there! It seems to me this phrasing in the prospectus is a clever way of saying the underwriters will be manipulating the crap out of the GPL stock price until they decide to stop. If I am wrong, will you please enlighten me and correct my misinterpretation so that I can continue to feel good as an investor in GPL? I will be happy to pass along any reasonable explanation to other equally unhappy investors.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • *bump* for newbies confused about who is shorting what.
      Cramer should have saved his pump for after April 12th.

      All you folks have done is added a bunch more fast dumb money to a stock that is being driven down by large wallet holders.

      There is a reasonable floor in the mid 3's, and its a painful hold from this point.

      good luck and don't mention it.
      fd....no current position, possible future long...jw

    • Good for you on this letter. I will try to reciprocate and draw up a similar one. I will be directing mine to the SEC with a cc to GPL. What they orchestrated here is something I believe the SEC will take an interest in. It was extremely poor timing on GPL's part to try to pull a fast one on its shareholders. If silver didn't break-out like it has, they might have pulled it off.

    • right on

    • Good Letter. The answer should be a LuLu, although I'm sure legal will spend days on the response if any is forthcoming. It's not often you see a (successful) company intentionally go out of their way to f*ck shareholders, but this appears to be what has happened here. How bad is this on the verge of a major PM break-out. Just sick!

    • This verifies that they have the knod to manipulate. My own logic may be flawed.

      I assumed a third party did the shorting. If the party doing the buying is the one doing the shorting because the company and the "group" decided the stock had run a bit too much. So for 21M they gave some cartel the right to short with an implied cover on the 12th...then this could drop substantially from here.

      This maybe a duck out until the 12th move or until we see a drop enough to cover with a nice profit from a short at $4.20.

      hmmmm...jw

    • I sent the following note to GPL this morning and the only reply I got
      yet is a news release saying that:

      GREAT PANTHER SILVER RECEIVES RECOGNITION FOR CORPORATE SOCIAL RESPONSIBILITY

      I tried again: What about your responsibility to give a reasoned answer to an investor who is puzzled by GPL’s apparent willingness to condone market manipulation of your stock price to the benefit of your new-issue buyers and at the expense of your long-term supporters, as evidenced by the blurb from the prospectus below and by today’s price action in the face of a magnificent break-out in the price of silver. I’m still waiting.

      (From the Great Panther Silver Limited website at http://www.greatpanther.com/s/Contact_Us.asp on Tue Apr 5, 2011 at 12:48:51 PM ]
      http://www.greatpanther.com/s/Contact_Us.asp
      Tue Apr 5, 2011 at 10:18:28 AM ]
      Reading thru the prospectus about your new bought-financing I find the following:
      Subject to applicable laws, the Underwriters may, in connection with the Offering, effect transactions intended to stabilize or maintain the market price of the Common Shares at levels other than those which might otherwise prevail in the open market. Such transactions, if commenced, may be discontinued at any time. See “Plan of Distribution”. The Underwriters may also offer the Offered Shares at a lower price than that stated herein.

      Would you please explain what in the hell this is supposed to mean? In fact, it seems like someone was "stabilizing" the price lower than where it would normally be trading yesterday! And today, with gold and silver stocks screaming higher, GPL is just sitting there! It seems to me this phrasing in the prospectus is a clever way of saying the underwriters will be manipulating the crap out of the GPL stock price until they decide to stop. If I am wrong, will you please enlighten me and correct my misinterpretation so that I can continue to feel good as an investor in GPL? I will be happy to pass along any reasonable explanation to other equally unhappy investors.

      • 2 Replies to hipshot24
      • You won't get an educated answer to that question from PR.
        The Underwriters can offer the shares privately for whatever they can get,
        Its like a relator accepting any offer for your home, as long as in their opinion it wont crash the value of the neighborhood.

      • If you had written a little less rude letter to start, you would have had a better chance of getting a response.

        If I got a letter including things like "Would you please explain what in the hell this is supposed to mean? " I would likely put it aside and not make responding a high priority in my work day" In a case like this, where you do not understand what is going on and are asking for help, it doesn't make too much sense to assume and be belligerent.

    • Thanks and great question. Please post follows up in this message section so we can find it. I am amazed by how many posts were made on the GPL board in the past few hours. Shareholders are TICKED!!!!!!!

    • Thanks for crafting such a good letter. I hope they respond and you share with the rest of us concerned with GPL going down when silver is significantly running higher.

      Thanks... ttc19

 
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