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Microcap & Penny Stocks : TSIS: WHAT IS GOING ON? -- Ignore unavailable to you. Want to Upgrade?

To: gary g who wrote (6580)	10/18/1999 3:03:00 PM
From: gary g	Respond to of 6931

Real Time Quote Chart Free E-Mail Raging PCBM Links < Previous Respond Next > By: viin Reply To: None Monday, 18 Oct 1999 at 1:15 PM EDT Post # of 38209 I got this from another thread. VERY INTERESTING ! viin ********************************************************* MUST READ THIS!!! The Anatomy of A Short Squeeze Short selling is the sale of borrowed (legal) or nonexistent (illegal) shares into the market. When the public or brokerage firms sells borrowed stock in the Nasdaq, the Nasdaq "Short Interest" reports reflect the public sale of borrowed shares. The OTCBB market, however, is not required to report "Short Interest".Some small market makers create nonexistent stock and sell it into the market. Since they often don't receive major order flows from retail brokerage firms, they have to sell nonexistent stock in order to participate in the market and to make money. It's very profitable. It's tax free. The sale of millions of shares of nonexistent stock usually destroys a healthy market order and even destroys any public company. Only the SEC has the power to end this kind of practice by suing these market makers who are illegal to sell nonexistent stock or issues a new regulation requiring all market makers and brokerage firms to report "Short Interest" in the OTCBB market just like the Nasdaq. A short squeeze is an attempt to force the sellers of nonexistent stock to buy issued shares. When the short seller buys the stock, it's called "covering". Attempts to squeeze the short sellers is a battle between David against Goliath. The short squeezers are David. Some market makers are Goliath. It's a battle involving millions of dollars when the short sellers lose. Some small market makers are regular sellers. One of the short firms is a public company. According to its filings with the SEC, their last quarterly 10-Q shows their assets as $800 million. They have a $34 billion, yes that's billion short position. This means that for every dollar in assets they own, they are short $42.50. If you had the same risk level, you would be bankrupt. To prevent your own shares from borrowed by some market maker or brokerage firm against your position on a stock, the easiest way is to put Good Till Canceled (GTC) sell order after purchasing a stock. Let's say you have bought 2,000 shares ABC stock at $0.50 per share. Then you place a GTC sell order for 2,000 shares at $2. Thus, your brokerage firm often doesn't lend your shares out. You can always change the order to sell a price which you wish. To stop the illegal sell of nonexistent stock, the best way is to lobby the SEC for a new regulation on how the OTCBB market would be operated. ---------------------------------------------------------------------- Copyright 1999, analystgroup.com. All rights reserved. Persons may reprint or copy any portion of this publication, provided any reprint or copy is accompanied by our web address (http://www.analystgroup.com).

To: gary g who wrote (6580)	10/18/1999 3:15:00 PM
From: BarbaraT	Read Replies (1) \| Respond to of 6931

Gary ... I do not know if the shares have been shorted or how many shares were shorted IF they were shorted. It has been claimed by the company in the past that this was one of the reasons for the volatility in the stock price (to the downside). I just reposted what I thought was an interesting post, if true and if it applies to us (which it might). This is really becoming tiresome wherein we have to now respond with "proof" to every single post made ... really, I'm sorry I posted it. Thought it might be of interest to us and for other bb stocks that some of us have. So go ahead - shoot the messenger. Don't have proof - take it or leave it.