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Microcap & Penny Stocks : nhmcf -- Ignore unavailable to you. Want to Upgrade?

To: Harold Best who wrote (297)	11/19/1997 7:15:00 PM
From: bullmarket	Read Replies (2) \| Respond to of 702

Possile take over attempt? Dear Hal, Although I remain bullish on the company's long-term potential for the reasons stated in my previous posts, I too am intrigued/concerned about the recent price drop for the near term.I have a possible analysis of the recent action: It does not seem that there is any change in the company fundamentals, as emphatically stated by management when I talked to them. in fact, regarding the healthcare situation, hospitals are undergoing belt tightening, which means they have to try purchase equipment/materials cheaply but not sacrifice quality. Nhmcf should be a winner as it delivers quality product at a cheaper price! Hospitals still have to do procedures, hence they still need equipment (no amount of belt tightening will change that fact!). Therefore, the only way they can cut cost is to buy same quality materials at a cheaper price, playing right into nhmcf strength. Recent price movements would suggest some artificial manipulations (see previous posts by "trader"); one again, trading today repeats the same pattern-large volumes at the end of the day after normal volume trading during most of the day. As "trader" pointed out, a trading firm called NITE (?) seems to be responsible for most of the selling. If there were changes in the company fundamentals, I would expect to see selling by more institutions. The fact that only one firm is primarily responsible for this downward pressure would suggest that this selling may indeed be short selling. It is unlikely the selling is done by small investors like ourselves, since these people would be selling at a loss- most of us purchased at a price higher than the selling prices lately. It is unlikely that people going long on this stock (small investors as well as institutions) would be selling at a loss given its continuing increase in revenues and strong fundamentals/promise of good news in the near future (the very reasons we bought this stock in the first place). Now, back to the scenario of one firm (NITE?) artificilly manipulating the stock price below its real value by possibly short selling and its ramifications. Why are they doing this?If the fundamentals are good and nhmcf is getting more and more revenues, one possible reason (at least in my opinion) would be that some other company may want to takeover nhmcf, if not in a friendly way than in a hostile takeover attempt (small company with extremely promising patented technology with increasing revenues, at a vulnerable point in its young stage of development). To do this attempt, the unwelcome suitor would first attempt to arrange for short selling by a firm, drive the price down to an artificially low point to spook other investors. These poor souls would then hand over their shares in a panic (forgetting the company fundamentals) by selling at a loss, thus driving the price even lower. The suitor would then step up at the appropriate time (shareholder meeting, perhaps?) with a take over share price that would be lower than what they would have to pay for if they did not artificially manipulate the share prices.And voila, they bought nhmcf!! If this is the scenario, nhmcf may be keeping silent since they may have their own weapons-news of contracts/earnings, ect. that may be announced soon which would drive the price back up and "squeeze the shorts". Bottom line: if long term investors remain patient, don't panic and forget the fundamentals, we may see the shorts squeezed and share price bouncing back up dramatically. We may also see a take over attempt which would also bring share price up. All of this may happen around the time of the shareholder meeting next week!Either way ,BE PATIENT AND STAY THE COURSE. DO NOT SELL AT A LOSS AND PLAY INTO THE HANDS OF THE SHORTS! OF COURSE, THIS IS ONLY MY OPINION, ALTHOUGH QUITE PLAUSIBLE, DON'T YOU THINK!