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Microcap & Penny Stocks : ARET (Formerly KLHE)
ARET 0.00010000.0%Nov 5 1:03 PM EST

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To: John who wrote (2980)12/23/1997 6:16:00 PM
From: Mr. Jens Tingleff  Read Replies (1) of 4594
 
HI John - Re: <If ARET doesn't get the Fluor-Daniel contract, will it plummet below .01?>

Even if our company gets the contract the stock-price can still go below 0.01 - On the other hand If we do not get the contract it may still go up to 0.06.

Why is that - Its because it is a relative small group of investors that follow this stock - And it is still our way of buying or selling that makes the moves in the price.

If I look at our first stockcount and take an average on holdings I would expect that the # of investors holding the float is around 300.

10 % of those holds 500K or more each. 50% holds less than 100K.
It is my impression that all holders above 500K is in for long and a considerable part of those between 100 and 500 is also in for long.

This means that rather small holdings will control the price. If you lend an ear to what Bob says in his post about the movements of the day - You will see that the price can be moved tremendously by smaller investors sale.

If the thought behind your question is wether to sell now - or hold - and take the risk that is gets below 0.01 again. Then consider the risk selling now (you will be able to get .022-.025 earning about 30% on your bargain the other day) - and then when you try to get back in again you may have to do it at 0.06-0.10 within some months.

Another way to go (If you can live without the money for a period) could be to put the shares for sale at a limit of 0.05 - And forget about daily worries on our company - just see the money come into your account at that particular day.

Merry Christmas
Jens

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