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Microcap & Penny Stocks : Amazon Natural (AZNT)

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To: LaShark who wrote (9229)10/23/1998 10:01:00 AM
From: tonto  Read Replies (1) of 26163
 
LaShark, the perfect squeeze scenario orchestrated with only 10 investors... Sounds to me that based on 100% participation and no one selling, your analogy of short positions having to be closed is correct.

The question becomes more complicated when one adds in the offshore naked short position. The position started out naked and as I have read with requirements of up to 200% in the account. As long as one continues to feed $$$ into the account to meet margin requirements a naked position offshore can possibly be kept open indefinetly.

As to mm's in our country, I have not been able to find anything in writing about approaches they take to avoid (if they can) the big hit. Maybe someone like Arcane can find something on this.

In a more real scenario, with many more shareholders, all not having the exact same goals, other variables enter which makes for great discussion about the effects of the squeeze and how certain individuals play it out on both sides regarding buying, selling, covering, and maintaining their position.
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