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Microcap & Penny Stocks : PKGP (Packaging Plus)
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To: John S. Baker who wrote (2962)6/4/1998 5:07:00 AM
From: TraderGreg  Read Replies (1) of 4783
 
TO ALL VERY IMPORTANT--John- If someone shorts shares illegally, the person who bought them IS STILL THE LEGITIMATE OWNER OF THE SHARES. No ands, ifs, or buts about it. PLEASE, do not forget this very important fact.

You are not the purchaser of stolen goods when you buy from an illegal shorter. That's the intoxicating aspect of short squeezes(that of course materialize only rarely).

Then why do illegal shorters do it ? Because most of the time they get away with it. They sell vapor and if the stock tanks, they replace it. Tell me John, is it embezzlement if the money is replaced before anyone catches wind of it missing??? Same analogy.

BTW, the reason most squeezes don't work is that people sell into the run up that is in anticipation of the squeeze.

Again, I don't want to be redundant, but the buyer of an illegally shorted stock is still the legitimate owner of that stock.

TG
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