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Microcap & Penny Stocks : THE OZONE COMPANY! (OZON)
OZON 11.600.0%Nov 28 4:00 PM EST

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To: Marlin C. Harmon who wrote (1250)11/11/1997 10:10:00 PM
From: Cents  Read Replies (1) of 4356
 
Exactly my point though Marlin! I agree that a short squeeze can increase upward price momentum. But people will always short a stock even if the available float is diminished.It would be unlikely to diminish the float to a level where a shorter could not find some shares to short against. What I am saying though is that by taking stock out of the float by calling in your certificates, the supply is decreased while the demand is the same. On any good news or any sudden increase in the stock price though, the supply stays at its diminished level if the shareholders so choose to hold these shares, while the demand for the stock certificates increases as the shorters cannot find as many shares for sale at the prices that they would like to buy them back at to cover the short. The point is that the shares lent to the shorters to short the stock in the first place become locked in until either the shorter covers or they are called back by the lender of the shares. The called cert shares are locked in until the actual shareholder decides to sell or lend them. The shares not yet issued are a wild card held by the company. The shares held in debentures are not a factor until the debentures become equitable. The shares held in house by the brokerages are then the only shares left that can be played with in this supply and demand game. I feel that an absence of abundant share supply will cause the short squeeze vice to tighten all the tighter. What are your thoughts on this Marlin?

Cents
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