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Microcap & Penny Stocks : Trading 101
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To: Ga Bard who wrote (388)11/4/1999 8:31:00 AM
From: Ga Bard  Read Replies (1) of 406
 
Lesson in tracking Stock Structure:

I have come to realize that the stock structure of a stock and tracking it is like then ole saying, "Follow the money."
Since stock is the money vessel this is where the I have discovered you will find a problem with a stock when you see problems in the stock structure.

The OTC BB site has a place where you can order the time and sales for any OTC. It is the registered account of what was bought and sold by the market maker. Since tracking this I discovered the following:

Say the stock structure is 10,000,000 Outstanding (OS) and restrict is 4,000,000 then the balance is 6,000,000 (Float) where as of that 6M 2M is held in cert form leaving 4M (Street Name)in the free trading float. Now that 2M can come in anytime.

If you track a stock from day one on the oversells you will see that the oversell should track the street name and even go above it. How what is interesting here is is when the figure goes above the street name. Some consider that the short position.

Now a broker can get a certififcate and sell it all prior to getting it in street name. Once the broker puts the stock in their account it is available for their clearing which is the market maker.

The market maker then sells it into the market to probably another market maker. This first sell is important because anotehr MM bought and sold the stock so it is a double sell and not a short.

If you know the following and it is not changing then you can calculate the following:

OS - restricted = float - held in cert form = street name

Always use the float figure and never the street name because the street name can can in an instant.

Also when insiders are terminated there 144 is restricted only for 90 days and the company can lift that restriction. Most companies do not lift the restrict but some do ... You never will know till after the fact. At the time the restriction is lifted the stock is free to come into the market.

Again if you track a stock structure and it is a LOT of work becareful of what you are reading from the results you are getting.

Remmeber if you get a stock that smells then get away from it and go find one that doesn't and above all do not follow blindly anyone on or off the internet.

JMO

:-)

GB
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