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To: Bobby Yellin who wrote (582)4/23/1998 5:00:00 PM
From: brodway  Read Replies (1) | Respond to of 4230
 
Bobby...Reverse split is not the way to go....
Yes you are correct in saying that if a company announced a reverse split, all the shorts will be called in and all the certs have to be available for delivery. This will in fact solve the problem of the market makers, for the time being. There is no guarantee, however, that they will not continue their evil work once the reverse took place. They can always continue to do the dirty work once the reverse is in place, knowing that the company is now weaker and lacks credibility. Exactly what they prey on.
The answer is not a reverse split. The answer to driving shorts out of tgsk is good news, solid earnings and sustained buying. This is the only way to get the shorts to leave frustrated. And these scavengers will only leave when they feel like there is nothing more to chew on.
For now it seems like things are turning that way. At the end of trading today the stock was up 10% on less then 100k shares of trading. This is a good indication that the shorts are getting scared and are turning over. If this continues for a another week or so, we may see them all run for the hills.

Hope this helps,
Happy trading

Brodway