Donner Minerals (DML.V) Message Board

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Gold/Mining/Energy : Donner Minerals (DML.V)

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To: VAUGHN who wrote (2985)	1/16/1998 3:15:00 PM
From: Ed Pakstas	Read Replies (2) of 11676

Vaughn, I agree that there has to be "in house" trading activity, but when a particular house puts out a buy recommendation, it would be nice see that the follow up of buy orders is outweighed by sell orders... What really ticks me off is that a lot of these juniors grant themselves options by the hundreds of thousands of shares...they then go to a brokerage firm (or they prearrange with the same) and sell them on the story...Brokers love it when they have hundreds and thousands of shares on the books...They then open accounts, get the firms to issue buy recommendations and short into the buying... The short position is covered when the option stock gets delivered... Let's say the option grant is .20...The brokerage firm puts out a buy recommendation, volume increases and so does the price...Firm starts to short the stock at .22 and up... House position starts to go into the negative bigtime...Everybody starts to yell and hype that the house is in a major short position...More buying comes in...Stock goes up further...End of the month the House Positions show XYZ firm in the negative bigtime...Buying dry's up... stock price falls down...Do you see XYZ buying back their bid negative position???...NO...They're already covered... XYZ House makes commission dollars...Insiders make the spread... Company gets money into the treasury... Shareholders loose... On to the next hot tip... ...ed

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