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Microcap & Penny Stocks : Amazon Natural (AZNT)

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To: tonto who wrote (9226)10/23/1998 8:35:00 AM
From: LaShark  Read Replies (3) of 26163
 
Tonto, I am no squeeze expert. I leave that to my woman but let me ask ya something. Say stock XYZ has 1000 shares in float. Lets say 10 investors, not day traders :-), each hold 100 shares and the current price is a buck a share. Some punk comes along and shorts 500 more shares into the system which brings the price down to .75 cents. Each of the 10 investor buys an addtional 50 shares and all the shares Mr short brought into the system are gone. Now if these 10 investors call in there certs. what does that do to the system? Mr. Short does not have to cover if has enough in his marginal account? At some point, I would think Mr. Short has no choice but to pay the squeeze price.
Thanks for any input.
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