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Non-Tech : BETT, BETT, BET Go for it. Others. FTET, GLOW, TTLN, SYD.V -- Ignore unavailable to you. Want to Upgrade?

To: Ronald P. Margraf Sr. who wrote (88)	6/17/1999 6:45:00 AM
From: DaiTN	Read Replies (1) \| Respond to of 144

Hi Ron, I think I know what was on your mind when you ask all those questions yesterday. You were suspecting an insider who is shorting the stock. Like I said, I am novice in this area, but I am trying to learn about shorting. I found this post from another board about who and why short a stock, it may not apply to OTC stocks, but may be you can educate me if any of these can apply to BETT. Dai ****************************** To: Elio Madama (20513 ) From: Anthony@Pacific Sunday, Mar 14 1999 11:02PM ET Reply # of 20550 Ok here goes , Ill try to answer this as I know it. 1.) NASDAQ market makers , specilaists and Financial Institutions can short almost anything at any time , its part of the "argument that it's necessary " in orderto maintain a fair and orderly market.. 2.) The entities and individuals with the biggest short trading positions are the Mega-Firms and Corporate Insiders, they very commonly sell stock offshore in Canada,, europe ( is hot these days ), and in other foreign countries as part of thier business to raise capital these sale are usually restricted for a time and so the buyer usauuly starts shorting stock in anticipation of the stocks registration , since these transactioons are usually at a ubstantial discount to market they try to lock in a profit by shorting at current makret levels, many time sthis is done with the cooperation of these firms and or market-makers..who have a predetermined arrangements. These sales are usaully frowned upon by the public as it is all done in secret. 3.) The next group of short positions are those held by insiders who open accounts offshore , in countries that arent under the jurisdiction of the SEc and or the NASD, ie, the Caymans, some tax-havens and in Europe,, some is being done through Central America..They open these accounts and deposit cash and use this cash as collateral for the short sales..thes insiders are liquidating restricted stock that they own but they are prevented from selling by SEC rules,, and then as soon as the stock becomes free trading they transfer the stock to these accounts or in some way cover the shorts that they have been maintaing offshore sometimes they will have a short position for 1 or two years.. 4.) then there are NASD firms that also have arrangemnts with offshore businesses to initiate short positions as a hedge against a promotional agreemnet with a aprticular company( also the same thing is done by Un-licensed promoters and hypesters) They may be long here in the US but are actually net short offshore ( Europe is the place of Choice ) ie Holland, Germany and England and British Island.. 5.) In addition it should be noted that by and large it is the US Firms and corpoarate insiders of US companies that maintain the laregest shorts in the stocks they are connected with.. 6.) Finally there are companies that are loacted in these countries that allow individuals to open accounts and trade according to the rules of that particular country..these accounts are rare and are not easily opened as most Corporate insiders , covet their ability to sell un registerd stock well in advance of the restrictions being lifted and as such the se Firms protect them selves from Scrutiny ..and while it is completely legal for them to effect such transactions ,,they do require significant waivers from these insiders and US Firms from any liability..Its like " dont ask...dont tell" 7.) In addition NASD memeber firms that are owned by many un-licensed partnmers are exempt from the borrow rules we have in the US..so it is also through this method that individuals who have these " connections " can short stocks ..that are BB or IPO's or other hard to borrow stocks .. 8.) It is my conclusion that the biggest shorts in the US are the longs and the promoters and the financial backers of these companies,as well as the insiders..That is why..I am outraged when I see these companies point their fingers at ..honest traders who have taken a position that is crtical of a company or a companies market valuation. 9.) In addition the NASD should and could abolish the artificial rules they have instituted to prop up US Stock prices.. It would create a much more fairly valued market and would reward companies that actually peform and meet their finacial goals