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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services -- Ignore unavailable to you. Want to Upgrade?


To: ThirdEye who wrote (1917)1/26/1998 12:48:00 PM
From: ThirdEye  Read Replies (1) | Respond to of 27968
 
Further observations: I have dug up as much as I could in a limited amount of time and read a zillion posts. I can see why there is optimism here, but I would mention a couple of things.

The average investor cannot short BB stocks. You either have to be a heavy hitter with offshore connections or a market maker that is pulling some questionable record keeping of what they are doing with shares. So I find the allegations of shorting here to be less than credible.

Having said that, what then is the reason for the apparently large price fluctuations? I believe it is somewhat due to the simple dynamics of how market makers manage their inventories. Large demand for shares must be met with efforts to replenish diminishing inventories by messing with the bid from time to time. Since the price is so low, the size of sales is inflated to levels far beyond the average sizes of higher priced issues. When I consider that, I think the float is actually quite small @ 10 Mill.

Those of you who are debating the reverse split issue should realize that a 1:5 and especially a 1:10 reverse would lower the float to miniscule levels and destroy the liquidity. To think that insitutions are interested or even able to buy/sell this issue is a big mistake, IMO. Most cannot touch anything not listed and even then can't touch anything for less than $5. Alot more shares would have to be issued before or immediately after any reverse in order to get the float back up to a liquid level. At least 10Mill before or at least 2-3 mill after.

So Monas has a dilemma. Can't get the price up to $3 to get listed without issuing more shares and can't reverse split to artificially jack the price up either without issuing more shares.

Bottom line: I'm on the sidelines waiting for reality(financials).

Any thoughts?



To: ThirdEye who wrote (1917)1/26/1998 1:13:00 PM
From: CO  Read Replies (3) | Respond to of 27968
 
Lowell, That is exactly right. I believe Ira was talking about gross margin and Lowell's post appear to be refering to net margins.

When I have mentioned anything about FAMH being shorted, I am only referring to the MM's not individual investors. I think there is more of this that does go on than we are realize.

Cheryl