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Gold/Mining/Energy : Crystallex (KRY)
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To: doby who wrote (4162)12/23/1997 10:55:00 AM
From: tanoose  Read Replies (1) of 10836
 
Hello doby;

Some things for mikey to look forward to;A Short Trap

The term "short trap" refers to backing the shorts into a position whereby they must cover (buy back the
short position in the
open market). The only effective way is to demand delivery of all of the shares currently held in street
name. This must be done
by the shareholder. The problem is that most brokers are brainwashed to believe that if the shares are
not on account at their
brokerage firm they are gone forever and the commissions generated selling the shares will go to
somebody else. One possible
solution is a large buyer (sometimes as much as 10% of the float) who will demand delivery of his
shares.

The Good News (Is there any?)

The good news is that is the trap is effectively enacted the short will HAVE to cover the position. This
can, in some cases, take
a $.50 stock to $15 or $20 a share - creating huge liquidity for the company and make the shareholders
rich. (20-1 returns are
not uncommon) Some of the most successful stocks on Wall Street are a result of an effect short trap.
Example: Presstek
(PRST) -- this was a $20 stock that made shareholders a five banger when a major promoter brought in
some large players to
bust the short.

The Only Real Protection

The only real protection: education of investors! Demand delivery of all shares you buy!!!!

A recent post on SH from Barnegat

With regards,Frank

P.S.The stage is set, the players are in position.......time they are running out of time????
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