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Gold/Mining/Energy : International Precious Metals (IPMCF) -- Ignore unavailable to you. Want to Upgrade?

To: go4it who wrote (25217)	11/10/1997 12:44:00 PM
From: Anne Lamb	Respond to of 35569

Ron said i could post this.. 2 side notes.. Eli is not in Phoenix yet..he will be tomorrow..however Doyle is.. Also on a sad note..Le Furlongs father passed away today..i'm sure we all send our thoughts and prayers. Ron Struthers IPM Update: > These two letters will give you a good idea on what is going on with the >shorts against IPM stock > > When this type of thing happens with a stock, sometimes the conditions >are set for what is called a 'short squeeze'. The shorts have actually sold >the stock and they must buy it back to close their position, just the >opposite to ourselves who buy the stock and must sell it to close our >position. > > When a stock rises in value the shorts must deposit more money to hold >their short position because in reality they have only borrowed the stock to >short. Simply put the short player puts up money to short a $6 stock, if the >stock goes to $8 he/she has to put up more money. The higher it goes the >more painful and expensive it becomes until the short actually buys back the >stock to get out of his/her situation. This puts even more buying pressure >on the stock causing even more pain for the remaing shorts who now jump on >top of each other trying to get out of there bad market call by buying the >stock at almost any price. > > This quite often causes an explosive rise in the stock price. There is >major news coming with IPM this week. Both Eli Constantine and Allan Doyle >are now in Phoenix. In the next day or so I will send out another update on >why I believe there will be a short squeeze on IPM that could cause the >stock to perhaps rise far above the old high of $14. > > For this reason you may not want to settle for small profits in this >stock after waiting this long for the turning point in IPMs fortunes. In >fact if the news comes out as I expect we may want to increase our >positions. > > So stay tuned for an update on the 'short squeeze' and read on for >interesting time with Lew Green > >