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Microcap & Penny Stocks : ACRT about to move to new highs -- Ignore unavailable to you. Want to Upgrade?

To: David S. who wrote (1067)	1/4/1998 5:37:00 PM
From: John Chew	Respond to of 7054

I assume the end of month run up might have been caused by Actrade being included in the MAGIC 25 of Individual Investor which hit the newstands in late December. The volume on the run up was over 200,000 shares. I do not watch the price on a daily basis. Perhaps a hedge fund "painted the tape" but this is like shooting yourself in the foot. Why artifically put the price up on yourself so as to make your short term results look good but hurt your final return in the end. Individual investor has posted two recent articles in their Dec. and Jan. issues. Unfortunately, these articles may bring in poorly informed investors who buy because the story sounds good, so in the short- term the price run up and news articles are negative, in my opinion. In other words, ACRT will be more volatile both up and down. My guess would be down first as weak longs are shaken out, but who knows--short-term trading is not my game. I certainly wish Actrade was not in the press. I do not know how much homework the II writer did, but I doubt it was comprehensive. I also think market makers have been hurt by the sharp run up in prices, so their bid and offer spread will be wider than normal which leads to greater price volatility. Even though Mr. Pinkie may be misinformed based on his posts, he makes people consider the negative or at least question themselves. Short selling is ultimately positive for a company's stock. It dampens volatility. I think the short interest needs to go up much higher before the shorts can be a real stabilizing influence.