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Microcap & Penny Stocks : How you help market makers short your stocks !!!
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To: Richard L. Williams who wrote (16)1/31/1999 2:32:00 PM
From: TraderGreg  Read Replies (1) of 20
 
One group of MMs can try and keep it down, but if there is buying interest and no one is selling and, most important, there are other MMs who have inventory, the shorting group won't be able to keep it down for long.

Calling for certs can work only if everyone does it. BTW, they probably shorted naked(without formally borrowing shares first). This is done all the time with BBs to keep liquidity going. However, if done with enough vengeance, it is fairly easy to wind up having more shorted shares than are available. It is then when the unified call for certs can get interesting.

If your group is tight, real tight, your call for 25%of the certs can become uncomfortable for shorters, but if the other 75% of the float holders cave in, it won't be a long ride up. BTW, they have the ability to stall longer before covering than regular schmoes like you and me would have. (life ain't fair is it?) And that extra time is often the difference between them covering at reasonable levels and covering at sky high levels.

I guess the gist of it all is they can try and keep it down, but unless they too are unified(all of them trying to walk it down), they will have to ultimately cover at whatever the longs are finally willing to give it up for.

TG

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