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Microcap & Penny Stocks : DGIV-A-HOLICS...FAMILY CHIT CHAT ONLY!!
DGIV 0.00Dec 5 4:00 PM EST

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To: Ronaldo who wrote (5269)5/12/1998 11:51:00 AM
From: LAWRENCE C.  Read Replies (1) of 50264
 
Ronaldo,
I've also wondered how the MM's could be comfortable with a 1.5 MM share short position. And if they have to cover at the end of the month, the stock's activity didn't reflect that kind of a short position.
If I had that kind of a short position I wouldn't act the way they are either.
I also can't see them carrying millions of share in inventory. If they had the shares in inventory they would gain more by letting the price rise and selling them off slowly at a higher price and keeping the price high.
1,500,000 x every $1 rise in price above their cost would net them $1.5 million
1,500,000 x a $2 rise in price would net them $3.0 million
Therefore I can't see them having the shares in inventory. If they had the shares in inventory they would love a rise in price.

So how can some of the MM's get away with being short about 1.5 MM shares? It's a puzzle.
Lucky Lawrence
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