Short Squeezes Message Board

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Microcap & Penny Stocks : Short Squeezes

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To: Kelly Sheppard who wrote ()	9/8/1997 12:51:00 PM
From: the fox	of 182

Hey Kelly, In simple terms, a short squeeze is when an entity such as a cartel, buys & hols shares that exceed the public float. The MM's have little choice but to buy shares to cover their short position. They have to buy these shares @ thew market price or go back to the company to issue or release additional shares to cover their short position(s). The cartel protects it's interest buy getting the company not to release additional shares to the public float & by obtaining certificates on all shares held by the cartel. The certificates declare how many actual shares are held. This puts the MM houses in a short squeeze when the # of certs held by the cartel out number the the total shares of float. Hence a short squeeze on the people that are betting that the share price will go down. This is exactly what is happening on the OVIS thread.

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