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Microcap & Penny Stocks : Diamond Entertainment Corp (Previously DMEC)
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To: Matt Brown who wrote (4177)6/2/1999 12:36:00 AM
From: Richard L. Williams  Read Replies (1) of 6957
 
Matt--
It's been my experience that when MM's are genuinely and painfully short on a stock, a few things happen that I am not seeing here:

1) The spread would open up to 20% or more to discourage buying. The spreads on DMEC have been tiny, .001 at times.

2) The lot size would decrease from 50 x 50 to 5 x 5 or less so MM's walk the stock up and down like playing a piano. 50 x 50 ties their hands to a degree.

3) Market orders would cause wild spikes upward as MM's extracted maximum pain from the poor sap that put them in. I haven't seen anything like this in DMEC.

I am not saying that a short situation doesn't exist here. But the lack of the above factors and the 150k sell at the bell today leads me to believe that the float here is a bit more flaccid than we are thinking.

Of course, I wouldn't put it past the MM's to "paint the tape." Oh, that never happens, right? <ggg>

Re: When are MM's required to cover? I have it on good authority that it is on the 3rd Friday of the month. I learned this yesterday, but in going back to see spikes in my major investment (HTSF), I see how it played out in reality.

So if we are waiting for that, well, the MM's have two weeks, yet.

Cheers!

Rick
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