Bill Wexler's Profits of DOOM Message Board

STOCKTALK

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.

Strategies & Market Trends : Bill Wexler's Profits of DOOM

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: jpbrody who wrote (1440)	7/13/1998 4:22:00 AM
From: Bill Wexler	of 4634

PHGN is interesting but not really a good short. Here's why: First of all, it trades on the OTC:BB. While it is technically possible for the average investor to short a BB stock, for all intensive purposes it can't (and shouldn't) be done. One of the primary reasons it is dangerous to short BB stocks is because many of them are rigged. Sometimes these stocks may only have one shady market maker. I can assure you that if they ever managed to meet the requirements for small-cap listing (and it seems unlikely they ever will), the market cap would not be $700 million. My guess is that the insiders are slowly bleeding stock out to some retired dentists in Florida (check out the insider trades), and what these suckers are paying is distorting the "market cap" wildly. After reading the last 10-Q, I wasn't surprised to discover that 94% of the stock is controlled by insiders. This leads to a weird situation much like SIEB or KTEL. Even if by some miracle you could find shares to borrow - it simply doesn't make sense to short 'em.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next