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Microcap & Penny Stocks : All American Semiconductor (semi)
SEMI 31.38-0.7%Nov 14 4:00 PM EST

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To: Arthur Tang who wrote (908)8/6/2000 8:01:55 AM
From: Arthur Tang  Read Replies (1) of 952
 
Stockholders almost never look at the market making side of the equation in evaluating the stock performance. Everyone buys on fundamentals and gets killed by technical analysis.

In making a market for a stock, the market maker has to have a seat on the board of directors. If he/she has faith in the company, the market maker then can establish stock pool and cash pool to maintain a market. Those stocks which have no market maker to maintain a market shows up in undervaluation. Those stocks have no cash pool or stock pool do not have pretty charts. No one will put their firms' reserves to work the stock.

SEMI had Lieberbaum, but they got into troubles with female employees, and subsequently went out of business. SEMI has to put out some feelers to get a new market maker or get a new issue with an underwriter who will sit on the board. This is important when we see the undervaluation SEMI suffered.

Nasdaq short interest reported 7/15 shows an all time high of 72,000+ shares. This supports the recent pull back. The last highest shorts were 35,000+ shares which was reduced in one month down to a few thousand shares. This info, may be more significant in expecting a breakout sooner than most investors think?

Regardless, market making should be treated seriously when a company is going big time?
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