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Microcap & Penny Stocks : VLVT (was CSMA) -- Ignore unavailable to you. Want to Upgrade?

To: TraderGreg who wrote (504)	11/16/1997 4:56:00 PM
From: I Am John Galt	Read Replies (1) \| Respond to of 11708

This is just a theory I heard over the phone, but I've never had anybody refute it with solid evidence: First thing to consider, you cannot compare the squeezes on Presstek International and Iomega with the squeeze on RMIL, CSMA, and other bulletin board stocks. Let's face it, nobody would short the stocks on the major indexes like they would here. There is hardly any restrictions as to what the MMs could do here. I'll try to set up an example: Let's say a company was shorted 15 million shares, with a 15 million share float. That means there are 30 million total. A bunch of investors get together and buy 20 million to catch the shorters with their pants down. They then call in for their certs. When they finally get to the 15 million share mark, and cert the entire float, the DTC(I believe it's the dtc), starts making phone calls to the MMs to tell the shorters to cover. Ok, well, that's fine and good. However, what if, in order to keep the price down, the MMs all get together and say, "Hey, I was called today to cover my short position. Could you please short some shares for me so I could buy yours and get this guy off my back for another six days(three days to cover, and you can request an extra three days)?" I heard from a professional shorter that this technique has been done in the past and will continue to be done in the future on bb stocks. What can be done? Who knows? I think, however, IMO, that Eutro has the best chance of a short squeeze taking hold. Eutro Holdings(EUTO) is in a unique position. They, right now, have a float of 66.5 million(roughly), and 50 of that is about to be retired. Those 50 million shares were never allowed to trade, but they are still out there. The investors over at Eutro Holdings are very close to having the 16.5 million float in hand, and the TA is still pumping out certs. We're hoping to have 25 million shares in cert form before the 50 is retired. If that were to happen, then look out. Because, in truth, there would be close to 10,000,000 shares out there in cert form that SHOULD NOT be out there. If there's 3 million in the float and 2 million certs are called, how do the mms short more than 1 million? Sounds like kiting to me? Well, the thing is, you also have to consider that it the MMs probably only shorted 1,000 share blocks at a time. They would not have to cover more than what was requested to them, and it's probably spread out among a bunch of mms. They could, in truth, make the appearance of a short squeeze not occuring by shorting. The only hope is if it was one person hit at one time, and then there's no other way to go, but even so, it doesn't prevent his body from shorting the shares. Matty Dee