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Microcap & Penny Stocks : PKGP (Packaging Plus)
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To: Shashidev who wrote (2631)5/28/1998 11:59:00 PM
From: TraderGreg  Read Replies (2) of 4783
 
what will happen to the MM's and shorter when the transfer agent will get all the 35 millions shares back and realize that they are millions of shorted shares floating around?

Shashidev-Ever played musical chairs before? In that game, one chair is removed as each round of music plays, so like 100 people scurry for 99 chairs when the music stops and one loses out.

Now imagine 90 people playing musical chairs(90million shares) and 55 chairs removed (55 million shorts)leaving only 35 true chairs(35 mm shares), but in this game, the 55 without chairs(shorters) have to pony up the price of a chair(cover when the certs are automatically called) or get thrown off a cliff(go broke?).

In the above example, I assumed that 1 1/2 times the float was shorted.. but even if 1/2 or 1 times the float is short, it could prove interesting...if all the longs hold tight.

TG
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