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Microcap & Penny Stocks : Quest Net Corp. (OTCBB: QNET)

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To: Carl R. who wrote (116)1/6/1999 9:32:00 PM
From: Gersh Avery  Read Replies (3) of 213
 
Carl .. One other set of people that will buy in the AM:

If you were short at the close today you will have to buy in the AM.

Why would someone short this stock just before the dividend?

Because they might have confused it with a stock split. It is not unusual for a stock to run up prior to a split and then drop .. QNET did the run up and now it should fall.. right?

Something overlooked here is that if you short a stock and the company gives out a dividend then you have to pay the dividend to the person that you sold (shorted) the stock to. In this case the dividend is extra stock. Three shares for every share already shorted.

So .. no problem .. just borrow more shares .. OK .. from where? Have you looked at the float on this one?

The AM could be very interesting. It looks like this co may have decided to cause the mother of all short squeezes.

Gersh
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