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Microcap & Penny Stocks : Rocky Mountain Int'l (OTC:RMIL former OTC:OVIS)
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To: TopCat who wrote (48049)6/13/1998 3:39:00 PM
From: Riley G  Read Replies (1) of 55532
 
Date: Sat, 13 Jun 1998 15:25:48 -0400
To: (Recipient list suppressed)
From: Riley G
Subject: Nicholas Darvas & E.L. Bruce

Riley,

Just thought you might be interested if you haven't read it before... in
Nicholas Darvas' book "How I made $2,000,000 in the stock market" one of
his big payoffs that got him to the $2MM was a purchase in a company called
E.L. Bruce. He bought at around $50 and trading was halted soon after at
$80. It seems that a group of shorters had determined through fundamental
analysis that the stock wasn't worth anything over $30, so they started
shorting it liek crazy. At the same time, another company was attempting a
hostile takeover of the company and trying to buy up all the stock. The
Amercian Stock Exchange halted the stock because they said it was no longer
possible to maintain an orderly market.

Soon after the halt, Darvas got a call from his broker with an offer to buy
the shares over the counter for $100/shr. He declined the offer and sold
his holdings a couple of months later in small blocks at an average of
$171/shr. It seems the shorts kept bidding higher and higher prices as
they attempted to cover. I guess if there is something to be learned from
this it is that the stock doesn't even have to start trading again for
people to get out profitably... in fact, I wonder if the trading halt
might make it more difficult for the shorts to hide their position.

BTW -- the book was great if you haven't read it!

-John
----------------------------------------------------------------------------

To all,

Know if everyone would follow the guidelines, we may be able to do the same
thing.

Those in complete name form should open a DLJ direct account and do nothing at
the moment.
Those with RMIL in street and IRA form should open a DLJ Direct account and
transfer all your RMIL shares into that account.
dljdirect.com

Force that DTC accounting of the shares!
Riley G
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