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Microcap & Penny Stocks : ECNC (OTC:BB) - eConnect -- Ignore unavailable to you. Want to Upgrade?

To: rick f who wrote (43)	6/28/1999 7:50:00 PM
From: Jorjenzak	Respond to of 18222

Shorting is not necessarily unAmerican, although long term investors hate it. It is a sound investment tool in certain situations. Generally it is good to use in companies which are over valued and which you believe are going to decline in price as a result. It is simply the reverse of value or growth investing. You sell borrowed shares high believing you will be able to purchase them, and cover, at a lower price later when the market adjusts down to reflect a true value below that created by hype or overspeculation. Also, MM's short a stock in order to keep an orderly market. If an MM runs out of inventory of a stock to issue then supply and demand would cause havoc and extreme volatility in an OTC:BB stock which generally has a low market cap and small float. MM's short a stock to keep selling shares and avoid wild fluctuations in the stock price caused by a dried up float. In our current situation, I think we all agree ECNC is not over-valued but quite the opposite. There are different reasons for the shorting here. PM Scoobey for details, which we have agreed to discuss exclusively by PM. There is a very good reason for it to occur in this stock, from the perspective of the shorters. Not too good for us and that is why Tom is doing all he can recently to counter act the shorters efforts. I beleive you will see the pressure released before or by mid-July and then ECNC should have a quick and likely momentous recovery to a truer reflection of the value of this stock. JMHO. :-]