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To: Rock_nj who wrote (17444)	1/29/2004 9:03:07 PM
From: rrufff	Respond to of 120415

The stocks covered on this thread probably won't be affected that much. As OTC BB low o/s and low float, there's not a lot of naked shorting on these. Lots of these have very low liquidity. That's why you see the big spreads and the difficulty getting in and out at decent prices. Not signs of short action. My understanding is that the MM's will continue to play their games and will in essence be naked shorting in the name of providing an "orderly market." As we see here often, that is BS. I can't wait for the day that there is electronic competition to MM's. I'd be more inclined to look at high volume, OTC, stuff that gets a lot of PR and is able to hide a lot of shenanigans. XYBR is one that comes to mind. Huge short play, but huge float. It's NAZ but has had a history of claims of shorts killing it at times from overseas and Canada brokers that act as legal bookies. COVD is another one. Certainly not a microcap but has a huge following and a lot of short action. It should have some PR's in the near future and this could cause some interesting action to the upside. Interesting question though Rock and I will be thinking a bit more about that. Maybe a few posts to some of the short gurus would be helpful. Ask them which stocks they are getting a little nervous in and whether they plan on getting out before that date. I suspect that it will take some time before any shenanigans are found out and enforced. If they get caught, the penalties seem pretty minimal. I'd like to see more penalties, but also more regs attacking excesses on the long side that lead to many of the opportunities that the shorts attack in their organized attacks. Rather than huge short squeezes, I think there may be chances to trade against some. I would look for rapid increases in short interest. You have to figure some of that could be augmented by the Canadian bookies. I've seen some interesting trading in some stocks I cover coupled with Yahoo bashing attacks. If a lot of that turns out to be naked shorting and attention is called to them, there could be some quick reversals. So if you see a rapid fall on no real bad news coupled with basher attacks with little substance, it might be a sign of some naked shorting. Buying at the bottom of each attack and drawing attention to shorts might cause quick reversals and a nice trade on the upside.