To: del clark who wrote (576 ) 4/23/1998 2:18:00 PM From: brodway Read Replies (2) | Respond to of 4230
Mr. Clark..Why would someone short tgsk?.... Well thats a good question. I have to first refer you to a good example in the movie Wall Street. I dont know if youve ever seen it, but in the movie, the big tycoon Geoco explains to his protege Charlie Sheen, who can not in his right mind understand why Geoco would want to bring down his fathers airline company that seems to be a good little business. Geoco turns around, smiles and says to the young buck, "because its destroyable" thats why. So, I turn to you Del, and say that this is not a NYSE or even a Nasdaq company right now. The only real sponsorship this company has is us, right here. We are the support of this stock, and because we are humans and are vulnerable to emotion, market makers feed on that. They know that the types of Merrill Lynch, Smith Barney or even a Gruntal is not here to support the stock when it drifts down, so they sell into the strength when they want to, JUST to buy it cheaper then when they shorted it just 20 minutes earlier. In essence, what happens is that MM's are confident enough to know that 30-50k shares of selling will bring this stock down 3-10 cents, and they can buy it back cheaper then what they sold it to you or me or someone here on the thread just a little while back. Not a bad business, right Del. Just imagine. Make a nickle on 10k shares 3x a day. I believe, if my arithmetic serves me right, is $1500 a day, every day. Thats more then most of us hard working people make in a week. So now, i refer back to your original question and say, why would someone short a stock that has solid earnings, and should trade up. Im sure you can deduce the answser yourself. BECAUSE THEY CAN. With this note, i leave you with my best wishes Hang on all, the best is yet to come Brodway