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Technology Stocks : Avalon Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Madeleine Harrison who wrote (188)	1/30/1998 1:37:00 AM
From: Eric Fader	Respond to of 1530

Mads -- If we assume that the MMs were all "flat" as of last week (i.e., holding no inventory and not short any stock), when the spread was .14 -.29 and no one seemed to have any interest in buying OR selling, it would now appear that one or two of them (notably SHRP but possibly PGON too) may be slightly short at the moment just from the last several days' trades. That would explain SHRP being on the bid at .23 earlier today when no one else was over .17 at the time. Of course, now that PGON and HILL have jumped over SHRP and are bidding .24 (PGON may have a new buyer willing to pay them .25 or .26 if they can take some in at .24 -- they like to do that and have done it for my MM -- or maybe they sold short part of that 25,000 order at .252 and are just trying to cover), SHRP is playing a dangerous game if they're willing to short still more at .28. Any short position they haven't covered by the time of the news release could prove very expensive when the stock immediately shoots into the .40s. Granted, it's not huge dollars, but MMs hate getting "caught." BTW for those who may be wondering, this type of selling short by MMs, with a goal of "maintaining an efficient market" in a very thinly traded stock, is perfectly normal and above-board. I'm not talking about the "evil short-sellers out to destroy our poor little company" nonsense that the manipulators of OTC-BB scams like OVIS/RMIL, VTPI, BANY and others like to spout.