SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Microcap & Penny Stocks : DGIV-A-HOLICS...FAMILY CHIT CHAT ONLY!!
DGIV 0.00Dec 5 4:00 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Knitwit who wrote (6620)5/17/1998 11:27:00 AM
From: Lazarus Long  Read Replies (4) of 50264
 
Bullmarket - hope you don't mind my elbowing my way in...

Knitwit - check PM's for copy & paste instructions.

I just love a good theoretical discussion! :-)

As to your question, yes it is theoretically possible that they could not cover - if we all hung on to our shares, but not very likely regardless of how we love our DGIV.

If someone offered you $1,0000/share right now, would you be tempted to sell?

I am supposing that the price would continue to rise until such time as somebody is ready to part with their shares. This price would top out at some premium over the "value" of the company. Shareholders would part with the shares because the stock price is now overvalued. When the MM's have covered, the stock price would drop and lose the premium. Add in the factor of folks that love hot stocks; therefore, competition with the MM's for the shares and you have an amplification effect Could lead to wild fluctuations in the price. But, it would eventually settle out toward the value of the stock.

BTW, the above is a SWAG... anybody seen anything like this occur? My guess is that MM's are pretty smart and don't find themselves in this position. They would very quickly go out of business!

Lazarus
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext