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Microcap & Penny Stocks : Kaire Holdings - $0.50 stock- $3 to $4 Book Value
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To: Michael Graham who wrote (89)7/28/1998 4:14:00 PM
From: Micro-Selector  Read Replies (2) of 1640
 
Michael:

Yes -- but assuming that the stock should have gone up some certain amount just because 2M shares traded assumes that MM's who trade amongst themselves actually have the stock and that the # of shares on quotes is the actual # of shares.

It is my understanding that:

1) For BB stocks, the # of shares on quotes is always the double the real # of shares traded (why that is, I still don't understand).

2) MM's are the only ones who can short a BB stock -- therefore, they can short the stock (resulting in volume of shares traded on the quote) without actually owning that # of shares. This makes for added volatility when BB stocks rise -- MM's increase the upward volatility (just as they have added to downward volatility) because they are forced to purchase shares to cover their short positions as the stock price starts to rise.

All in all, unless a stock is sitting flat with little activity for quite a stretch and has a very small float, it is very difficult to judge what a stock SHOULD DO or SHOULD HAVE DONE when a certain # of shares traded.

However, one thing that DOES seem to hold even for BB stocks is that VOLUME PRECEDES PRICE. It is for this reason alone (and the quality of the KAHI Website and the fact that they have ALREADY effected a reverse split -- a big WHEW for those who had to suffer it) that I feel the stock has nowhere to go but UP. If the market and MM's didn't think so, there simply wouldn't be the volume of the last week or so.

Just my opinion and reasons for optimism,
Micro-Selector

P.S. Why do I believe there is really only 3M shares out (this is what AOL lists in quotes)? Because the reverse split was 1 for 75 -- that would have put the # of shares from before the split at around 225M which is phenomenally high -- I don't think it could have been much higher than that (although I don't recall the exact #).

P.S.S. In response to previous posts complaining that SI posters do not add content, I am not sure if this was directed at me but I would like to clarify my agenda so that noone thinks it is "hidden" -- I OWN KAHI AND WANT THE SHARE PRICE TO RISE. Anything that is within the law and does not include lying I would gladly do to further this cause!
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