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Microcap & Penny Stocks : GOLX - Scam or the next Yahoo? -- Ignore unavailable to you. Want to Upgrade?

To: Mighty_Mezz who wrote (8)	9/13/2000 10:55:51 PM
From: Q.	Read Replies (1) \| Respond to of 22

Mezz, volume in this stock is too low to make it attractive to short. Somedays there are only a couple of thousand shares changing hands. On Friday, only 100 shares. host.wallstreetcity.com Short sellers rely on there being a real market for the stock. A low-volume situation like this is not much of a market. In fact, it poses a great risk for what some call a "zero-float manipulation" where promoters or insiders can do trades among themselves causing the stock to rise. This can squeeze shortsellers. If they borrowed stock, it is likely to be called in because the float is tiny, and insiders can arrange that this will happen during the squeeze. If the short sellers are naked, they still get squeezed. Such a trick works only if the volume is low. Like GOLX, for example.