To: NASDBULL who wrote (5597 ) 4/2/1998 8:05:00 AM From: Alan Coccio Read Replies (5) | Respond to of 10903
Matt, I'm going to make a couple of comments here that are also in response to an absolutely full mailbox I had this morning with emails and private messages. There is an argument to be made here for the fundamentals of this company and what is happening to the stock price. That's all well and good and may very well indicate higher...maybe much higher...prices in the coming days. However, there is something else playing out here which is very normal in this Bulletin Board marketplace. Listen to Ice Cube when he speaks for he knows what he is talking about. In addition to the normal workings of the stock market, there are Market Makers playing their very normal games with a volatile stock. Perhaps this will be a five dollar stock in coming days but on the way to five dollars you are going to see games played that you won't believe. We saw at least two instances of that yesterday that are very invisible except to those that have Level II capabilities and know how to read the action that is taking place there. There was almost certainly Market Maker shorting of the stock. I mentioned last evening that there were large trades that were broken into several small trades. Why do you think that happens? It happens so a sudden short sell of 50,000 shares isn't readily visible. I don't say this to piss anyone off but don't convince yourself that calling in certificates in any way stops illegal shorting. It doesn't. And in some places it's not illegal. Offshore accounts do it on a regular basis (which is one of the reasons I questioned the offshore account set up by the principals in this company after they filed their 10SB.) Canadian brokerages are masters at this and do it all the time also. No one engaged in this game much gives a damn about having the paper to back their trades. This is simply a fact of life. Now, is there still money to be made on a company like TPI that seems to have its business plan in order? Of course there is. Just be prepared to watch sudden drops in price as market makers shake loose shares or short the stock on the way up. When someone can short 50 or 100,000 shares and make the price drop 10-20 cents before resuming the upward trend, there are huge amounts of money being made. The neophytes will panic and help the shorter by selling into these drops ensuring even more profit for the market makers. Yesterday, at the close, there was every indication that the price would close below a dollar. Right at the bell, two market makers took positions simultaneously on the bid and ask to ensure the dollar and above price. In short, they are going to play with your minds at every opportunity they get. My only point being that this is a rigged game we play and you either play the ups and downs of the day's activity by having the experience and ability necessary or you hold for the longer term in the belief that TPI is a two dollar or higher stock. On the way, the market makers are going to do everything they can to shake you out of your stock. I'm very sorry for being so long-winded here but there is just such a misunderstanding of how the Bulletin Board works and I see so many people losing their shirts needlessly and it gets me pissed every once in awhile. Bottom line: if TPI is a two dollar or even five dollar stock then hold your shares and wait till it gets there unless you have the tools and experience to play the game in the meantime. Do not play into the hype or into the market maker shenanigans. Alan