chinese roulette, page-6

Merchant bankers can have a double agenda (double dip)
-(a) To manage funds on behalf of clients for a fee
-(b) To trade

In the case of (a) it is quite concevable that shares are bought on behalf of a client and in the case of (b) the same merchant bank can, on its own behalf, short the hell out of the shares make a killing and then go long ont he way back up making a double killing.

This is what was happening with CDOs during the 07-08 heady days of flogging
low doc loans- packaging the CDOs, flogging them and then shorting them.

It will certainly be interesting to see if LYC's share price will get back above
75c in time to trigger the $50 Mil retail offering.

Blame the legislators for not outlawing this double dipping. Marchant bankers say that they have internal firewalls in place to prevent this but nobody believes them.

Cheers
Moorookamick