To: steve leftwich who wrote (1410 ) 11/20/1997 2:06:00 PM From: John Curtis Read Replies (1) | Respond to
Steve: Remember that registering to sell doesn't mean that he'll necessarily exercise that "option" quickly. Cal may merely be serving notice that he intends, at some future point, to sell shares. As for today's action, I've seen nothing to alter my bullish position on VLNC, and am using this weakness to add to my position. As I said earlier, manna from heaven. However, I've given some thought to what's been said here recently regarding the small float, majority of shares being in relatively few hands(ie 800 share holders) and I began to think about what would be most likely to happen should the "big boys" want in. The most logical conclusion would be to have the MM's start driving the Bid down in an attempt to garner as many cheap shares as possible. If this is the case then anyone who has employed a stop loss mechanism is "showing their cards" to the MM's who can see those stop losses. All else being equal, they'll move the bid down and take out those stop losses. Of course, panick could set in, a dream scenario from a MM standpoint, causing folks on margin to sell(or forced to sell) driving more shares out of one set of hands and into the MM's.
