yesterday against speculative investing in BCB's shares.

In an unusual move, Mr. Francis issued a statement expressing concern at the surge in BCB's stock on the Bermuda Stock Exchange.

Mr. Francis said he was worried that investors may be buying in "at prices which do not reasonably reflect the current book value of Bermuda Commercial Bank shares or its current earnings''.

Since oil magnate Mr. John Deuss took control of the bank on May 10, BCB's shares have risen from $6.25 to $141 -- slightly above their 1990-high.

Mr. Francis pointed out that the current share value was about double BCB's book value and represented a price/earnings ratio of approximately 20 to 1.

"These are aggressive ratios by banking standards and I would not like to see any investors hurt by the current upswings,'' said Mr. Francis.

Mr. Francis added: "The development of Bermuda Commercial Bank and its positioning as an important force in Bermuda's international banking activities is a long-term project and Bermuda Commercial Bank aims to develop its business in a gradual and cautious manner over the next few years.'' He warned that "very small trades of shares with buyers outnumbering relatively few sellers can artificially inflate share prices''.

In an apparent effort to quell any suspicion of stock manipulation, Mr.

Francis said that none of Mr. Deuss' interests had acquired shares in BCB since May 10.

He also pointed out that BCB's directors are only allowed to trade in the bank's shares for a period of 30 days after the year-end or half-year financial statements.

Mr. Richard Francis.