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Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion. -- Ignore unavailable to you. Want to Upgrade?

To: orygun who wrote (52268)	6/23/2000 9:20:00 AM
From: Tom Allinder	Read Replies (4) \| Respond to of 150070

To All: Well, I don't think anything will change anytime soon on the OTCBB regarding shorting by MMs... A good friend of mine gave me some numbers the other day. These may or may not be accurate but the concept is the same. Out of any 300 OTCBB stocks only 1 ever makes it to the AMEX, NASDAQ (even though many OTCBB company NRs say the company is headed there). Out of that 300, 150 will eventually become worthless. OTCBB has a definite trend... It goes way up in the late fall through the winter and collapses in the spring. Happens every year. So, MMs knowing that 150 of the stocks they make markets in will become worthless and KNOWING that they can sell stock at $2 in Jan and the same stock will eventually go back to .20 in the late spring or summer... Why would any MM need any inventory of stock? They can just sell and sell. They can cover at .20 in June or July after selling the phantom stock at $2 in January or just play the odds which is 50% they will never have to cover. Now, people are going to tell me that MMs have to do this, that and the other to balance their books etc etc etc... I think very few of them follow the rules. There are rules but who has the time or resources to enforce them? It goes back to what I have always said. The OTCBB is like the western U.S. in the 1800s... very little law, lots of criminals, bandits, thieves and other forms of lowlife... BOTTOM LINE... keep your powder dry, your guns clean and well oiled; and, realize there are no rules. Don't complain when you get caught in an ambush like SBAQ (I did and it isn't the first time or the last time). Complaining does no good and no one and I MEAN NOBODY cares... This may suck but this is the way it is. Tom