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

To: Harold Best who wrote (327)	11/26/1997 9:58:00 PM
From: bullmarket	Read Replies (2) \| Respond to of 702

To Hal and all those who have"long" positions on nhmcf: The last few days have been puzzling and definitely frustrating. The share price would go up and then it would drift down as someone sells or shorts the stock. As mentionned in my previous posts, someone is shorting this stock (through NITE?) but I don't think for the same reason most people short stocks. Normally, one would short stock if one feels the fundamentals of the company are slipping or if one feels the company is overpriced and is due for a "correction". I don't feel that these scenarios fit the current situation with nhmcf (we KNOW it is definitely NOT overpriced, trading at its 52-week low...and the fundamentals are only getting better-per increasing revenues and per recent nhmcf announcement) I truly feel, in this case, that someone shorts this stock to bring the price down so they can increase their position in this company (?takeover-just my guess). Once they have gained their piece of the company (in the form of increased shares), it would be in their interest to have the share price increase. Hence, they may buy back to cover, resulting in a share price increase which also would benefit them, since they will be holding their shares by the time they buy to cover. THIS SHARE PRICE INCREASE WOULD OBVIOUSLY HELP US! One piece of supporting evidence (at least to me) why these shorts are not your "normal"shorts: It is public knowledge that 1Q98 earnings will be public soon (by the end of Nov98-this Friday, per IR). If one were to short nhmcf to make a profit the "normal "way, should one not wait for this earning report to come out before shorting the stock (since the share price should increase with the good report). However, if they shorts are doing their shorting for the reasons outlined in the previous paragrapph, they would short prior to earnings release (as they are doing now) since the share price would be lower now than to wait until after earnings release and/or contract announcements. Shorting prior to announcement gives you less "room for error" since the stock has less room to fall, but it would make sense if you actually short to (EVENTUALLY) increase your own long position! I look at this scenario thusly: Someone feels strongly enough about nhmcf potential to "go out of their way" to short this stock at this time with the hope of getting more shares at lower prices!That actually makes me believe even more in their company long term future! Furthermore, the company is having its (first?) share holder meeting this Friday and an open house next week (dec.4). I can only assume they are going to do their best (announcements, etc.?) to bring the share price up by that time (for better public image, at least). Hopefully, if the price go up high enough, we may even have a short squeeze! Hence, I am waiting (impatiently, I must add) till that time. My advice (unsolicited, i realize ) to all longs: be patient and hang on to your shares..at least for now until the end of next week. You may see the price going up as the company "fights back". If you sell at this ridiculously low price, you may miss the bounce and actually play right into the hand of the shorts. You should call their IR department to voice your concern and judge their response for yourself. They welcome all calls,especially at this difficult time. Having done this myself, I am satisfied with their response....for now. By the way, Happy Thanksgiving to ALL!!