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

To: inchingup who wrote (361)	12/11/1997 9:07:00 AM
From: bullmarket	Read Replies (1) \| Respond to of 702

Hi Gary, Welcome to the thread! Nhmcf has recovered from its lows of mid to high 2s, which was reached about 1-2 weeks ago. Hence, it has gone up quite impressively from then in percentage terms, especially in view of the overall market conditions and the relatively bearish tone of the market. As mentionned previously, the Asian problem should NOT have any effect on this stock, since it is a small cap company, selling a necessity (medical supplies) in N.America and Europe. I suspect there are many investors who want to get in but are waiting by the sideline for now, given the relative instability of the market. Once the overall market tone improves, nhmcf will definitely take off. One important tenet of investing is that once the overall market recovers from a downturn, people tend to invest in companies that fare well in bad times, and this company is one of the VERY few which have actually gained in the past few days!!! In addition, at this price range, some small investors who got in at the high2s-low 3s levels may be doing some selling to lock in some quick profits, although I think they will be missing quite a bit of profits ahead as this stock will only go up with improving fundamentals. Remember, the stock was artificially depressed with short selling, which has now stopped.Hence, I do not think this stock will go down and those who got out now may not be able to get back in at significantly lower prices. One thing about the large short positions: the shorts may be attempting to buy back to cover during the lulls between announcements from the company (between the sharp run -ups following each announcement), and this action will help keep the stock price up. However, if we have repeated announcements from the company regarding contracts, etc. at relatively short time intervals which would create more Wall Street visibility (more buzz), leading to a quick rise in the share price, the shorts may really be squeezed. They would then be forced to cover at a much faster rate (or else risk further losses)- that would really get the price back to where it belongs!!!