Rocky Mountain Int'l (OTC:RMIL former OTC:OVIS) Message Board

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Microcap & Penny Stocks : Rocky Mountain Int'l (OTC:RMIL former OTC:OVIS)

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To: TideGlider who wrote (37709)	1/23/1998 12:06:00 AM
From: Mr. Dendro	Read Replies (2) of 55532

Can anyone explain the mechanics of a short squeeze to me? I seem to be missing something. Let's assume Pugs is correct when he says that there are five or six million naked shorts. The most optimistic estimates of the ceritificates called for by the cartel appear to indicate that they have called for one or two hundred thousand more shares than are in the asserted float. If the squeeze commences upon the resumption of trading, won't it last only so long as necessary to obtain those one or two hundred thousand shares? Once those are covered, what would require the remaining several million shares to be covered? Am I missing something? If I'm correct in assuming that the shorts only need to cover the shares called for, then the chances for a successful squeeze diminish rapidly. There are supposedly 2.5 million or so shares held by the cartel. If the shorts only need to cover two hundred thousand shares, it means that the squeeze will be over before one tenth of the cartel shares are sold off. A lot of people will be left holding the bag.

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