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Non-Tech : Meet Gene, a NASDAQ Market Maker -- Ignore unavailable to you. Want to Upgrade?

To: X Y Zebra who wrote (258)	7/30/2000 1:01:52 PM
From: LPS5	Read Replies (1) \| Respond to of 1426

Tazio, Absolutely. I'm not even speaking of the questionable nature of certain firms' business plans, particularly in light of what are, in many cases, very weak financial positions. The fact is, we're talking about small issues, with tight floats, extremely thin volume/attention, and for which trades cannot be electronically executed, making them subject to slower, manual executions. And that's yet another place where I find the "market maker conspiracy against OTCBB stocks!!!" whining hilarious. While dealers (market makers) do indeed make profits from changes in their inventory, they are at risk by providing capital to take the other side of certain trades. Yet the place in a large brokerage firm or wirehouse where the real position taking and active trading for profit takes place is the proprietary desk, sometimes called the "principle investment" desk or dept. Does anyone think that large firms proprietary desks care enough to mess with penny stocks? And if they did - which I'm sure they don't - that desk heads would let them put more than a token amount of money into a thinly-traded, tight floated, speculative issue? That risk management supervisors would let traders risk firm capital - theirs and many others' jobs, bonuses, plus individual anfd firm reputations - in certain historically speculative, incredibly risky issues that trade 20K, 50K, 100K shares per day, with spreads wider than their bids are tall? Particularly when there are the opportunities that there are on the exchanges, NASDAQ, convertibles, etc.? LOL. The volatility that people see in OTCBB and pink sheet stocks is, as I see it, probably a function of those dealers (market makers) NOT wanting to be exposed to long or short risky issues, and if anything, stepping out of the way...rather than them maliciously "pushing" the prices around. And as for professional, proprietary desks? Well, I'm quite sure that they don't partake :) LPS5

To: X Y Zebra who wrote (258)	7/30/2000 3:10:48 PM
From: Janice Shell	Read Replies (1) \| Respond to of 1426

My belief is that the great majority of people have no idea of the difference between "investing" and "speculating" --let alone "gambling" <g> Then, on top of that they blame others for their own... 'lack of wisdom'. Further on that: as currently exemplified by the folks on the RB "MMManip" thread, way too many seem to me to be screaming for a "level playing field" that would permit them to enjoy disproportionate reward (that elusive 10,000 bagger) at no or very little risk. They appear not to understand that that isn't how it works. I'm also puzzled by the references of many to bb junk as stocks that the small investor can "afford", as opposed to, say, Nasdaq NM quality issues. They're so damned dumb they don't seem to grasp the fact that it's your percentage return that matters, not the price of the stock.

To: X Y Zebra who wrote (258)	7/30/2000 10:16:33 PM
From: average joe	Read Replies (1) \| Respond to of 1426

But it's soo easy Tazi, look I'll show you. Tazi BVI buys up the majority of the float in Mine Co, Ltd. which trades on an obscure exchange somewhere in China or Canada for 2 cents US a share. Tazi Delaware Ltd. (major shareholder Tazi Proprietary Ltd. in the Caymans) vends a bunch of claims into Mine Co, Ltd. and keeps a 40% interest via Tazi Holdings Inc. a Bahamas registered company. All of the above entities are owned by Tazio 100%. The consideration for the vend is several million shares (the exchange will of course demand a qualifying report by an approved engineer for the vend which is now in the works) Tazio does a private placement at 2 cents so Mine Co, Ltd. can keep pay listing fees and pay for office space. "Tazio may or may not be a director of Mine Co, Ltd. depending on the success or failure of his last promotion" Tazi receives a geological report by a Mr. Felderhoff to complete the vending of those claims. (Felderhoff is paid 250,000 shares for his report who never even visited the property) The report interests a real mining company and now Mine Co, Ltd. does a deal with Big Co. Ltd. "Tazi Holdings Inc. also does a deal with Big Co. Ltd. for slightly better terms than Mine Co. Ltd. i.e. the entire option payment and all the tax roll-overs available for the deal" Our hero Tazio is now free to do what he was born to do, he will promote! While Big Co. Ltd. contracts teams of geologists, magnetometers and drills to the site Tazio will orchestrate a hype job. I understand his favorite is to put a garbage can over his head while on the phone telling people he is in the first blasted portion of the shaft. Or if a city crew is jack hammering on the street he opens up his window and says "My God you should see it glisten"! As the stock begins to rise our hero begins unloading his offshore positions. Always via an agent who is contacted on a pay-phone. As the stock is unloaded our hero understands there is one more kick at the can. Big Co, Ltd. is finding squat on the claims. Our hero can now short his stock into the ground from whence it came as the news comes out. Everybody in the know made money. The true believers who believed the soap job are still holding wondering what happened. The biggest believers, the doctors, lawyers, veterinarians and they are also the least likely to blow the whistle on our hero. The mechanic the horse trainer the waitress the average joe, i.e. the people who talk it up all made enough money for a trip somewhere or a new vehicle. Our hero knows he can't afford to piss off real people.