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To: TopCat who wrote (804)	2/14/1998 12:13:00 AM
From: Sojourner Smith	Read Replies (1) \| Respond to of 6528

This is my theory on what happened. I am open to other possibilities, though. 1. rumor mill (Yahoo) says there will be news last Fri night. 2. steady buying all day Fri, up over 100%. 3. some investors see news, some see big gainers, some see our SI thread. 4. Market orders are placed and the mm's gladly crank up the price. 5. All those who bought Fri (except me LOL) sell above .20. Probably ex-CSMA investors who have become cynical. 6. Stock collapses with true-believers burned again. I don't think it's MMs or Riley. It's penny stocks, they are deadly. The only cure is a company that does what they say they will do and if a company is really good it will survive the price swings and climb. However, I can't think of many that climb out of penny stock hell. It is possible it could be the company selling into strength, but I have no proof of that, and I don't believe it in this case. It is true there are some hypsters with big followings who are misleading people. I just can't see where Riley did anything unethical in this case.

To: TopCat who wrote (804)	2/14/1998 12:19:00 AM
From: LPasko	Read Replies (1) \| Respond to of 6528

To elevate the situation here into some grand battle of the wicked versus the innocent is to oversimplify. The market is so fascinating precisely because it is not simple. The stock action here discloses no elaborate fraud; only the usual interplay between investors who are sophisticated and naive, patient and frantic, daring and cautious. Yes, market makers take advantage of demand--that's what they do for a living. The buyers here knew, or should have known if they are indeed adults, that no particular price was guaranteed on Monday, and that panic buying is often later joined by its twin, panic selling. If you don't know that then, as Sojourner correctly suggested, invest first on paper. Do it a lot until you are sure you understand stock movements, and can recognize market hysteria. I know many have bought the line that every time the chips don't fall our way we are "victims" of some one or some thing, or some overarching conspiracy. While this is sometimes true, there is too great a tendency for some to use this as a crutch, rather than accepting mature responsibility.