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Strategies & Market Trends : WR's Momentum Trades -- Ignore unavailable to you. Want to Upgrade?

To: Tom Allinder who wrote (8172)	8/3/2000 8:10:18 PM
From: Wayne Rumball	Respond to of 11130

They shoulda listened aren't talking......

To: Tom Allinder who wrote (8172)	8/4/2000 7:39:00 AM
From: Joe Copia	Read Replies (1) \| Respond to of 11130

Now FDKP is being talked about at the state level. Can we make it to Federal? To: Joe Copia who started this subject From: bobkern Thursday, Aug 3, 2000 8:16 PM ET Reply # of 23073 Hey Joe. Trying to help the cause as I am fed up with MM's. Just sent this off to my senator. Dear Mr Lugar: This is a follow up to a letter I recently sent to you regarding Market Makers and their activities. I really appreciated your prompt response and would like to follow up on it. Being a small business owner here in Indiana, I appreciate your continued support and efforts on our behalfs. I think it is time that the government take a serious look at the Market Makers on the OTC/BB and implement some stricter rules for them to be held to. Many changes have been introduced lately to protect investors, such as the recent Eligibility Requirement for companies to trade on these bulletin boards. But the real issue here is the Market Makers. Something needs to be done to bring these people in line and create a "fair" trading environment for investors. As I said in my last letter, I honestly believe more investors lose money on these stocks because of Market Makers than scams and other Pump & Dump's. They need to be held to the same standards as the investment community. If you take a look at Finders Keepers, (OTC/BB FTKP) you will see exactly what I am talking about. This is a company that announced they were considering a forward stock split between 5 and 20 to 1. Research also showed that they were in the process of releasing some good financials. All indications were that this was a good investment for both short and long term. Now enter the Market Makers (MM's). During the run prior to company announcing the considered stock split, MM's shorted this stock. As I understand it, they are "legally" allowed to short a stock up to 100% of its float. This is the first problem. Though I understand they are allowed to do this to keep the market flowing, they go way beyond what was the original intent of this "allowed shorting". MM's use this scheme purely for profit. Look at any OTC/BB stock and you will find swells in the price on no news and for no reason. Once they sucker in the buyers they then walk it back down and cover their short positions. Look at any company and you will also find they typically do this after anticipated news hits the wires. Short it on the increased buying, then drop it on news and walk it down to pick up the shares they shorted. Make you think you made a bad investment and get you to sell for a loss for fear the bottom is falling out. I don't know what you think, but to me this is stealing. Plain and Simple! If you look into this, you will see it happens all the time with these stocks. Recently read that almost all MM's are short on every OTC/BB stock they tade. Don't know how true that is but it is scary none the less. Now back to FDKP. Because a certain group of investors are fed up with this, they have demanded the certificates be issued in their names. This move takes the stocks out of their "street name" as I understand it, and the MM's must cover their short postions for this to happen (plus an equal amount to cover those borrowed against them). It has recently been brought to my attention that there is approximately 1.9 Million shares of FDKP that have had the certs demanded (probably even more than that). FDKP only has 1.44M shares in the float! If this doesn't get your attention then I would ask that you look at the daily trades for this company over the last couple of weeks. What you will find is bid and ask do not reflect buying and selling. You will also find numerous "sells" for 100 and 200 shares. This is done by the MM's to manipulate the price down in an attempt to "shake" shares loose from nervous investors. To "steal" them in my opinion. If you look at the trades between MM's you will see exactly what I am talking about. Because of this demand for certificates there is a very clear picture developing, for you to see for yourself, what these Market Makers can do. Bottom line is it is stock manipulation which I am pretty sure is illegal. Market Makers should not be allowed to manipulate stocks and operate with their own agenda. Laws need to be set that prevent this continued manipulation and protect investors. This great country has always been the standard bearer for the rest of the world. Our stock Markets are unequalled in any other nation. The system was set up with the supply and demand theory. As demand increases and supply decrease, price goes up. Plain and simple. Market Makers should not be able to control a system that has proven to work well. The botoom line is that the system always adjusts itself. No matter how high or low a stock goes, it always levels out near its true value. The market dictates this, not the Market Makers. For them to be able to do this is criminal. My growing concern with this is simple. With the opening up of the information highway and the now wide use of the internet, buying stocks has never been easier (or cheaper). Add to this state lotteries and casino boats, and you have a nation with hopes of hitting it big. The OTC/BB stocks are exactly the same. Every day people are buying these from their home computers in the hopes of making big money. Another group of investors is those who actually do research and try to invest wisely in the hopes of adding to their income and making a better life for themselves. Then here come the Market Makers, manipulating these stocks and taking these peoples money. And thats not right. It appears that the investors are always at their mercy. They can, and, do whatever it take to make money and God help the investors. It is high time the government look into this and make these manipulative activities illegal. I am very sincere about this and appreciate your time. I hope that you can look into this and set some changes in place making it fair for everyone. I know of many people who feel as strongly about this as I do. Could you please advise me on what we can do to make our voices heard. Who should we write? What other courses of action can we take to bring this to the right peoples attention? Thank you very much for your time. Looking forward to hearing from you. Respectfully, Robert A Kern