LAKE SHORE GOLD CORP 6.25 PCT DEBS T.LSG.DB

RE: RE: RE: LSG Shorts

[basemetal]

IMHO There are two separate businesses at work here.... the business of mining and the business of stock jobbing,  The latter came into existence when a syndicate of banks bought over 100M of shares from Hochschhild for resale to the public.The price paid by the syndicate suggests that they knew nothing that wasn't already known by us. And that still pertains today.

At a difficult time, a syndicate of banks has seen fit to provide $100M of capital, but only by way of convertible debenture.  The condition was applied simply because convertibles can be hedged by shorting the common to protect the downside.  Moreover, they think, good management of the hedges might in the long term yield higher profits than the "upside" profit we seek, at the same time as protecting against loss.  ... stock prices fluctuate.This is the business of stock jobbing... knowlege of its secrets have nothing to do with mining,  All IMHO, of course.

And then there's mining......